Moneycontrol PRO
HomeNewsBusinessTwitter swings to Q1 loss despite revenue growth as costs up

Twitter swings to Q1 loss despite revenue growth as costs up

The company said growth was driven by seasonal strength, product improvements and interest in coronavirus.

April 30, 2020 / 18:40 IST
Representational picture

Twitter posted a loss in the first quarter as the social media company's higher expenses outweighed revenue growth.

The San Francisco company reported Thursday that average daily users grew 24% year over year, the highest ever growth rate in the company's history. Twitter has added 14 million daily users since the previous quarter.

The company said growth was driven by seasonal strength, product improvements and interest in coronavirus.

Last year, Twitter started disclosing its daily user base, or the number of users who log in at least once a day and see ads on the platform. The daily metric has replaced its monthly user count, which Twitter said it will no longer disclose. Other companies, such as Facebook, give both daily and monthly counts.

For the three months ended in March, Twitter posted a loss of $8.4 million, or 1 cent per share, on revenue of $807.6 million. A year ago, the company earned $190.8 million, or 25 cents per share, on a big tax benefit. Revenue totaled $786.9 million.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

On average analysts surveyed by FactSet forecast quarterly earnings per share of 10 cents on revenue of $783 million.

The company previously withdrew full-year financial guidance and said Thursday it's not providing second-quarter estimates either. Shares jumped 4.9 per cent in premarket trading.

PTI
first published: Apr 30, 2020 06:15 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347