Twitter reports surge in sales as COVID - 19 - related flow fizzles

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Twitter reports surge in sales as COVID - 19 - related flow fizzles

On Thursday, Google reported a surge in sales as products improvements pushed profits above Wall Street targets, joining other digital ad firms such as Facebook Inc and Alphabet Inc's Twitter Corp, whose businesses have proliferated during the Coronavirus Pandemic.

But Twitter said that the costs and expenses were growing and new hires would be expected more than expected in this year based on stock based compensation.It also said user growth in the coming quarters could slow as the COVID 19 flow fizzles.

After the bell, shares of Twitter dropped 8.7% to $59.30.

After years of product stagnation, Twitter has announced bold new goals to expand its user base and triple its revenue by 2023.

The Ad Revenue for the first quarter was $899 million, up 32% from the previous period a year ago and surpassing analyst estimates of $890 million, according to IBES data from Refinitiv.Total revenue for the quarter was $1.04 billion, up from $2.03 billion year over year and slightly higher than estimates of $1.04 billion.

According to FactSet data the San Francisco-based company reported 199 million active users daily, up 20% year over year compared to analysts' estimates of 200 million according to the company.

Twitter repeats its warning that growth of its monetizable day users - its term for daily active users who can view ads - could reach low double digits in the next quarters, likely hitting a low point in Q 2.

The company said in a letter to shareholders that it was too early for us to know the full impact of Apple Inc's privacy change, which first began rolling out on Monday, but said its integration with a new ad measurement tool from Apple has increased the number of iPhones it can target certain types of ads by 30%.

This week, Apple warned that its growth could decline significantly this year as Facebook's change makes it harder to target advertisements.

In February, Twitter sacked a target to double its annual revenue in 2020 from $7.5 billion to $3.7 billion in 2023.Following the criticism that Jack Dorsey summed up this year as being slow, we're not innovative and we're not trusted, the company has recently completed newsletter platform Revue and podcast company Breaker and teased a litany of new products.

The company has also tested vanishing tweets called Fleets similar to Snapchat's ephemeral features and has teased new ways for creators to make money on the site, from tips to exclusive follows where fans can pay for exclusive content.

The service said Twitter expected to increase total revenue quickly this year assuming the coronavirus was less of a factor and that it sees modest impact from Apple's changes.

But the company said in its outlook that stock-based pay expense for this year will amount to $600 million, up from its prior guidance of $525 million to $575 million if it ramps up hiring.It projected its capital expenditures to be 900 million and $950 million for the full year.

Twitter has said that it expects monthly headcount to increase in 2021 on a cost-over-year basis at least 25%.

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