Twitter Earned Revenue of $683 Million during Q2 2020, A 19% YoY Decrease, and Reached 186 Million mDAUs during the Quarter

Twitter has reported significant user growth for the second quarter of this year, even though revenue fell below the expectations of analysts. However, it was already widely expected that the revenue will fell. On Thursday, the micro-blogging platform announced its Q2 earnings for 2020. Unlike earlier earnings reports of the platform, one thing that loomed large over this report was the unprecedented massive Twitter hack in which high-profile accounts were hijacked earlier this month. Jack Dorsey, CEO Twitter did address the incident in a statement released with the earnings report.

Twitter earned $686 million in revenue, which translates into a year-on-year decrease of 19% as the social networking site reported revenue of $841 million last year. The company reported $808 million in revenue for the first quarter of this year. The company also reported an operating loss of $124 million, compared to a $7 million loss for Q1 of this year.

Twitter reported diluted earnings per share at $1.56 for the quarter, while the platform’s monetizable daily active users are now 186 million. The company had not provided any guidance ahead of Twitter’s recent earnings, mainly due to the impact coronavirus is having on a business that relies largely on ad dollars. But the consensus estimate for the platform’s earning was around $708 million.

It is worth noting that the decrease in revenue was more pronounced in the second quarter of this year as the worldwide lockdown only really took effect during the last few weeks of the first quarter.

On a positive note, the 186 million monetizable daily active users are up 39% on the 139 million mDAUs Twitter reported for the same period last year. Twitter had 166 million daily active users during the first quarter of this year which means that the platform experienced a 12% quarter-on-quarter growth during Q2 2020.

The platform addresses the disappointing ad revenue in a statement stating that the widespread economic disruption and a significant decrease in global ad spend as a result of the coronavirus pandemic led to a 27% decrease in ad revenue in the last three weeks of March 2020. Twitter experienced a gradual, moderate recovery relative to March levels throughout most of the second quarter, however, late May to mid-June was an exception when several brands slowed or even paused ad spend in reaction to the United States civil unrest.

Jack Dorsey stated that the company’s product is paying off, with tremendous growth in users as well as engagement. The 34% YoY increase in mDAUs is the highest quarterly growth the company has delivered since Twitter began reporting monetizable daily active users’ growth. Dorsey added that the company is taking various steps to improve resiliency against hacks.

Read next: Reuters: Over 1,000 Twitter Employees Could Access Tools That Enabled Hackers to Hijack High-profile Accounts
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