US elections make Twitter grow strongly


The short message service Twitter increased its sales in the Christmas quarter of 2020 by 28 percent compared to the previous year to 1.29 billion US dollars. This quarterly turnover is a new company record. The advertising revenue Twitter was able to increase in the fourth quarter by 31 percent. According to the CFO Ned Segal, Twitter has expanded the advertising options, especially in the mobile sector, so that income from in-app advertising has even increased by half.

That goes from the Tuesday night published Business Figures Twitters emerged. The quarterly operating profit increased nearly two-thirds to $ 252 million. The net profit jumped 87 percent to $ 222 million. Twitter succeeded in doing this because it is reaching more and more users with advertising. In December 2020 this figure was an average of 192 million, 27 percent higher than twelve months earlier.

In the first month of the new year, this growth fell to 20 percent, but this is still above the previous average. So it didn’t hurt the influx that Twitter blocked Donald Trump. For the full year 2021, Twitter boss Jack Dorsey also expects an average of 20 percent more advertising recipients on Twitter.

Twitter’s sales throughout 2020 have also increased, but only by seven percent compared to 2019 to $ 3.72 billion. The 19 percent increase in total spend of $ 3.29 billion resulted in operating income of $ 27 million and a return on sales of just 1 percent.

The 2020 net loss of $ 1.14 billion was based on a tax allowance of $ 1.1 billion. Without this, there would be a net loss of $ 34 million. In 2019, Twitter had a net profit of $ 259 million, even if the former income tax benefit of $ 1.21 billion is factored out.

Dorsey stated that the changes in his short message service “encourage healthier conversations for those who use our service, including advertisers and partners.” Speaking to analysts following the announcement of the financial figures, the manager added, “We are a platform that is obviously much bigger than a topic or an account.” Both can be understood as an allusion to the statements of former US President Donald Trump and his exclusion from Twitter.

For the current year Twitter expects an increase in spending by 25 percent. This is largely due to more than 20 percent of the new employees that the short message service plans to hire in 2021. The company is also investing in its own data centers in order to be able to supply more users.

Twitter expects the coronavirus pandemic to improve and the effects of iOS update 14.5 to be moderate. With the upcoming version of the operating system, the apps will have to request user approval before they can display personalized advertising.

Even so, Twitter expects the 2021 revenue increase to exceed overspending and be between $ 940 million and $ 1.04 billion. After the announcement of these figures, the Twitter share gained around three and a half percent in after-hours trading.


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