Twitter has reported strong revenue growth for Q3 2020, while its monetizable users also grew year-on-year (YoY) even though they fell short of estimates. The social networking giant announced its most recent financial and user metrics this afternoon, breaking a longstanding tradition that has typically seen Twitter announce its financials before the market opens.
The day after CEO Jack Dorsey faced a grilling from the U.S. Senate over how social media companies moderate content, Twitter revealed revenues of $936 million — a year-on-year (YoY) increase of 14% on the $824 million reported last year and a quarter-on-quarter (QoQ) increase of 37% on the $686 million for Q2 2020. The company added that its net income for the quarter fell around 22% from last year to just under $29 million.
In the earnings press release, Twitter CFO Ned Segal noted that its revenue hike was largely down to advertisers increasing their spend around events such as live sports, having held back in previous quarters due to the global pandemic.
As with the previous quarter, Twitter hadn’t provided any revenue guidance ahead of its Q3 2020 financials due to the impact of COVID-19, but analysts had pegged Twitter’s revenue for the quarter at roughly $775 million, while mDAUs had been estimated to reach more than 196 million.
In short, Twitter smashed it on revenue, but disappointed on user growth.
Twitter’s shares are sitting roughly at double the value of what they were at back in March, hitting a five-year high of more than $52 this week. However, off the back of its lower-than-expected user growth, its shares plunged up to 12% in after hours trading.
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