Associated PressApril 30, 2021 11:56:01 AMT
Like its larger technical peers, Twitter released stronger-than-expected results for the first quarter on Thursday. But its lukewarm outlook caused stocks to plummet after hours. The San Francisco-based company earned $ 68 million, or 8 cents a share, in January-March. It increased from $ 8.4 million, or 1 percent, per share loss a year earlier.
Revenue increased 28 percent to $ 1.04 billion. Analysts expected an average loss of 2 cents per share on revenue of $ 1.03 billion, according to the survey Data set.
Twitter in the tumultuous early part of the year permanently suspended arguably its most powerful and polarizing user – former President Donald Trump – from its platform following the deadly riots in the U.S. Capitol in January.
It had also suspended more than 150,000 other accounts on its platform because of what it described as “disseminating conspiracy theory” related to dangerous behavior offline. Primarily, these accounts were related to QAnon, an unfounded conspiracy theory that Trump secretly waged a fight against the “deep state” and powerful devil-worshiping pedophiles.
While the interruptions bothered certain users, Twitter leaders insist they want a “healthy conversation” on the platform and are willing to take some heat to enforce the rules.
“When it comes to Twitter rules, we recognize that politicians and government officials are constantly developing the use of the service, and we want our policies to remain relevant to the nature of the ever-changing political debate on Twitter,” the company said Thursday. To this end, Twitter is seeking public input into its rules.
Twitter had an average of 199 million daily users in the third quarter, up 20 percent from the previous year and just under the 200 million analysts expected.
By comparison, Facebook had an average of 1.88 billion daily users in March 2021, up 8 percent from a year ago. The average daily active user of Snapchat was 280 million in the first quarter.
Twitter does not disclose monthly user numbers.
Twitter said it expects revenue of between $ 980 million and $ 1.08 billion in the second quarter. Its focus is below analysts ’expectations of $ 1.06 billion.
Twitter shares fell $ 6.21, or 9.5 percent, to $ 58.88 outside of business hours.