Twitter entered Q1 after a Q3 revenue beat that still missed its monetizable-user target, making the gap between revenue growth and audience expectations an established concern. The company now again cleared the revenue forecast while reporting 199M monetizable daily users, just below estimates.
Twitter’s shares fell more than 12% as investors weighed the 199M monetizable-user result against the 200M expectation despite $1.04B in revenue.
Twitter’s 7M sequential increase in monetizable daily users establishes a larger audience base for its revenue efforts, but the small shortfall makes user delivery the immediate market focus.
Second-order effects
Twitter’s next earnings reports face a higher bar to show that revenue growth can coincide with audience growth that meets expectations; the subsequent Q2 user increase to 206M directly addresses that measure.
The results reinforce revenue per active device as the more useful lens for Twitter investors than revenue growth alone, because the market reaction diverged from the revenue beat.
Third-order effects
If this pattern persists, public-market valuation of ad-supported social platforms will increasingly hinge on whether monetizable audience growth keeps pace with forecasts, not simply on top-line growth.
Twitter’s reporting arc points to a durable tension in platform economics: growing revenue can support the business while a miss on monetizable reach still resets expectations for future monetization.
The trend: Ad-supported platforms are being judged on the combination of monetizable audience scale and revenue growth, with either metric able to dominate the market response.
Permanently banning its most famous user, Donald Trump, and cracking down on the postings of right-wing figures does not appear to have hurt Twitter's financial performance. The company's revenue jumped by 28% in the first quarter of the year. https://www.nytimes.com/...
Interesting #IDFT #ATT from Twitter $TWTR “our integration with SKAdNetwork has allowed us to reach a new audience, increasing the total number of iOS devices to which we can advertise with MAP ads by 30% while maintaining cost-per-install performance.”
I'm not surprised. He made Twitter unusable for lots of people. I'd often have MAGA bots turning up on my unpolitical tweets to harass me and other commenters. Since him and his minions went elsewhere, twitter is far more enjoyable. https://twitter.com/...
Despite ALL the noise and hysteria, NOBODY concerned about #IDFA $TWTR: “we continue to expect total revenue to grow faster than expenses in 2021, assuming the global pandemic continues to improve & that we see modest impact from the rollout of changes associated with iOS 14.5”
Thanks for flagging. Twitter doesn't have nearly the risk that Facebook does here and most of Twitter's data actually comes from our use of the app. Unlike Facebook who is a majority third party data surveillance. https://twitter.com/... https://twitter.com/...
Guidance lower which is hurting $TWTR share price Not surprised - Jack knows that COVID was probably the best thing that ever happened to Twitter when it came to DAUs and there will be a slight reversal as people start going outside
We made progress w/ new ad offerings in Q1, incl. our launch of Curated Categories, an improved Twitter Amplify (image below) + extended Brand Safety features. To prepare for Apple's iOS 14.5 update, we expanded our integration w/ SKADNetwork, Apple's measurement solution. $TWTR …