Twitter’s revenue jumps to £725.31 million in the fiscal third quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Oct 29, 2020
  • Twitter’s revenue jumps to £725.31 million in the fiscal third quarter.
  • The social networking service earns 14.72 pence per share in Q3.
  • Twitter's monetisable daily active users climb 29% to 187 million.

Twitter Inc. (NYSE: TWTR) said on Thursday that its earnings and revenue in the fiscal third quarter came in better than expected. User growth, however, was weaker than analysts’ expectations for Q3. Twitter’s financial results come only a day after its Chief Executive Jack Dorsey testified in front of the Senate Commerce Committee.

Shares of the company tanked a little under 15% in after-hours trading on Thursday. Including the price action, Twitter is now exchanging hands at £35 per share versus a year to date late of £17 per share in March. Interested in investing in the stock market online? Here’s a simple guide to get you started.

Twitter’s Q3 financial results versus analysts’ estimates

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According to Refinitiv, experts had forecast the company to print £602.10 million in revenue in the third quarter. Their estimate for earnings per share was capped at 4.65 pence. In its report on Thursday, Twitter topped both estimates posting a higher £725.31 million of revenue and 14.72 pence of adjusted per-share earnings in Q3.

The social networking service reported 187 million monetisable daily active users (mDAUs) versus a higher 195 million expected, as per FactSet. On a year over year basis, however, mDAUs were still about 29% higher. In the prior quarter (Q2), Twitter’s mDAUs stood at only slightly lower 186 million.

CEO Jack Dorsey commented on the earnings report on Thursday and said:

“We have grown our daily audience by 42 million in the last year as people all around the world come to Twitter to find out about the topics and events they care about most. We’re helping people find trusted sources of information by better organising and surfacing the topics and interests that bring people to Twitter.”

Twitter’s ad revenue climbs 15% in the third quarter

The San Francisco-based company said that it generated £626.12 million of revenue from ads in the recent quarter that translates to a 15% annualised growth. Ad engagement in the third quarter, it added, was 27% higher than last year. Twitter said:

“The period surrounding the U.S. election is somewhat uncertain, but we have no reason to believe that September’s revenue trends can’t continue, or even improve, outside of the election-related window.”

Twitter performed modestly upbeat in the stock market last year with an annual gain of close to 10%. At the time of writing, it is valued at £32 billion.

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