Twitter shares rise on record yearly growth in daily users
By Katie Paul and Elizabeth Culliford SAN FRANCISCO (Reuters) - Twitter Inc on Thursday reported its highest-ever yearly growth of daily users who can view ads, beating analysts' estimates on usage and sending its shares up 4%.
By Katie Paul and Elizabeth Culliford
SAN FRANCISCO (Reuters) - Twitter Inc
Twitter's average monetizable daily active users (mDAU) increased 34% year over year to 186 million, above analysts' estimate of 176 million, in a rise it said was primarily driven by external factors such as shelter-in-place requirements and increased conversation around the COVID-19 pandemic.
But the company missed Wall Street's lowered expectations for quarterly revenue, as the coronavirus-spurred economic slowdown battered the company's largely events-oriented digital ads business.
Ad sales, which make up 82% of Twitter's revenue, sank 23% to $562 million, a drop the company attributed to brand spending pauses tied to the pandemic and U.S. civil unrest. Analysts had expected $585 million, according to IBES data from Refinitiv.
Chief Executive Jack Dorsey opened a conference call with analysts by apologizing for the hack that compromised the accounts of high-profile users last week, saying "we feel terrible." In a statement, Dorsey said Twitter had taken steps to improve its security and "resiliency against targeted social engineering attempts."
Total revenue came in at $683 million, down 19% year-over-year, helped by steadier sales growth from the licensing of users' posts to researchers and marketers.
Twitter has struggled to build out its ad offerings, leaving it reliant on a suite of promotional tools geared toward advertising around big events and product launches, which have all but vanished during the pandemic.
The company said it finished rebuilding its ad management technology in the second quarter, which would support faster development of new formats going forward, and was rolling out measurement tools for "direct response" ads used by app developers.
On the conference call, Chief Financial Officer Ned Segal declined to give details about the impact of a July social media advertising boycott that was intially focused on Facebook
Twitter also said it was exploring "subscriptions and other approaches to complement our advertising business," such as commerce, though it was not expecting any revenue to result this year Dorsey said on the call that the company would have a "really high bar for when we would ask consumers to pay for aspects of Twitter."
The company reported a second-quarter loss of $1.2 billion, largely driven by the reversal of a tax benefit established last year, when the company transferred intellectual property to Ireland. Because of the second quarter's steep coronavirus-related losses, Twitter did not make enough money to take advantage of the tax benefit.
Adjusted to exclude the tax considerations, the company incurred a loss of $127 million, or 16 cents per share, roughly in line with analyst expectations of a $125 million loss. It had an adjusted profit last year of $37 million.
Echoing earlier guidance, Twitter said it expects data licensing revenue to "moderate" for the rest of the year.
Costs and expenses grew 5% to $807 million, below the increase in the low teens that Twitter had forecast. The company said it anticipated expense growth of 10% or more in the third quarter.
Social media rival Snap Inc
(Reporting by Elizabeth Culliford and Katie Paul; Editing by Leslie Adler and Steve Orlofsky)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.