Twitter Shows Fairly Better Results in Growth and Revenue Increase in Q1 of 2021 Compared to the Last Quarter of 2020

While the last quarter of 2020 did not prove to be very successful for Twitter in terms of growth, with the growth momentum at a slow and almost flat line in Q4. However, when Twitter shared its latest performance update for the first quarter of 2021, things look fairly the opposite to what they were in the last quarter of 2020.

In the first quarter of this year, Twitter has shown an increase in its daily active users by 12 million more users and a 28 percent year on year revenue increase was also observed on the report.

On the topic of user growth, the report from this data concluded that twitter has now over 199 million Monetizable Daily Active Users which is a fast pace growth from the last quarter and the largest mDAUs that has been observed over the past five quarters. The ratio of the Monetizable user growth was given as 169 increase in the US regions and a 38 increase in the international regions. However, though 169 + 38 is not 199, we assume this is some rounding off error.

The company further enlightened in the report that the mDAU grew by 13 percent in the US usage and by 22 percent in the international usage this quarter, with Japan and India showing solid and more expanded growth.

The company believes this quarter shows fairly good results in terms of growth both in US and around the world because of the ongoing product improvements and global conversation around current events. But though Twitter has seen a solid improvement in growth within the Indian regions things haven’t been easy for them as a lot of problems have occurred with Twitter clashing with Indian authorities over attempted censorship.

The revenue that was brought by twitter in this quarter adds up to 1.04 billion dollars which is a 28 percent rise in from year to year.

The company than further stated the impacts that have happened and are expected to happen because of the changes in policies made by Apple with the launch of their new 14.5 version in which they have included an App Transparency Feature and because of this the Mobile App Promotion (MAP) revenue rose than normal as the advertiser demand was strong in the quarter.

However, Twitter does not expect the IDFA to show any major changes on their platform but like all other applications they are also waiting to see the consequences before measuring any impacts in that regard. Even if Apple’s new change brings a problem in moving forward all the applications will be equally impacted and it will soften the market all together.

The company further stated that their expenses have also grown in their research and development departments by 25 percent and are now adding up to a total of 125 million dollars, as the company is working towards launching new features like audio Spaces and new 'Super Follow' options to provide financial incentive for creators. Apart from this, Twitter also acquired newsletter platform Revue, and development platform Reshuffle in the period, adding to its costs. The company is also planning on moving forward in the developments with a range of new options like Business Profiles which is currently under working and newer tools like Communities and the expansion of topics will also require added investment.

The company lastly said that they have now over 6000 employees recruited in the company for all this action that is being processed.

The user growth and revenue Twitter has gained this quarter seems fair with the amount of work and new tools and features the company is outing n and working towards. We hope the next quarter is the same promising as this one.


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