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.
Frequently Asked Questions
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.
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.
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.
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.