Twitter‘s market value plummeted after the company published its financial report for the first quarter of 2021. The reason was insufficient audience growth and lower growth forecasts for the coming quarter. Writes about this CNBC.
At the end of the quarter, the company’s revenue amounted to $ 1.04 billion, which is 28% more than in the same period last year. In addition, the profit of the social network was $ 68 million instead of $ 8.4 million in losses in 2020. Advertising revenue also rose to $ 899 million, up 32% from last year.
The number of monetizable users of the social network was 199 million, which did not meet analysts’ expectations. According to FactSet forecasts, there should have been a million more.
The company also published a forecast for the second quarter of 2021. The social network predicted revenue from $ 980 million to $ 1.08 billion, while Refinitiv analysts expected a forecast of $ 1.06 billion. Twitter representatives noted that it is not yet clear how the change in iOS 14.5 policy will affect the platform.
Here’s what Twitter reported versus Wall Street’s estimates:
Gizchina News of the week
- Earnings: 16 cents per share, adjusted, vs. 14 cents forecast by Refinitiv
- Revenue: $1.04 billion vs. $1.03 billion forecast by Refinitiv
- Monetizable daily active users (mDAUs): 199 million vs. 200 million expected forecast by FactSet
Twitter is working on Tip Jar to monetize content on the platform
According to reliable Twitter user Jane Manchun Wong, the social network plans to add a feature called Tip Jar to users’ profiles. It is designed to monetize content and is integrated with payment services such as PayPal, Venmo, and Cash App.
A similar feature is expected to be available for the Twitter Spaces platform, which is focused on competing with Clubhouse. Twitter hasn’t officially announced the new feature yet. It also does not specify who will be able to place the Tip Jar button on their page. It is assumed that users will need to have a certain number of subscribers to activate the feature. Also remember that back in February, Twitter announced that it was working on Super Follows subscriptions, which will allow you to charge a fee for watching exclusive content.
These features are supposed to help Twitter move away from targeted advertising and generate commission income from donations received by users. In addition, content creators will also benefit directly by acquiring an additional way to monetize their media products.
