After the company released its financial report for the first quarter of 2021, Twitter's stock price plummeted. Insufficient viewer growth and lower growth expectations for the coming quarter were the reasons. CNBC is the subject of this article.
The company's revenue at the end of the quarter was $ 1.04 billion, up 28 percent from the same time the previous year. Furthermore, the social network made a profit of $ 68 million in 2020, compared to a loss of $ 8.4 million in 2020. Advertising sales increased by 32% year over year to $ 899 million
The social network's monetizable user base was 199 million, which fell short of analysts' estimates. FactSet estimates that there could have been a million more.
A prediction for the second quarter of 2021 was also released by the company. The social network projected revenue of $ 980 million to $ 1.08 billion, compared to $ 1.06 billion predicted by Refinitiv analysts. Representatives from Twitter stated that it is still unclear how the new iOS 14.5 policy will impact the website
:Here's how Twitter's numbers compare to Wall Street's predictions
Earnings: 16 cents per share, modified, compared to Refinitiv's estimate of 14 cents
Revenue: $1.04 billion vs. Refinitiv's prediction of $1.03 billion
Monetizable daily active users (mDAUs): 199 million vs. FactSet's forecast of 200 million
TWITTER IS IN THE PROCESS OF IMPLEMENTING TIP JAR IN ORDER TO MONETIZE CONTENT ON THE PLATFORM
According to Twitter user Jane Manchun Wong, the social media platform intends to add a Tip Jar option to users' profiles. It's made to make money off of content, and it's integrated with payment systems like PayPal, Venmo, and Cash App
The Twitter Spaces platform, which is aimed at competing with Clubhouse, is supposed to get a similar feature. The new feature has yet to be publicly confirmed by Twitter. It also makes no mention of who would be able to add the Tip Jar button to their website. It's presumed that in order to unlock the feature, users would need a certain number of subscribers. Also, keep in mind that Twitter announced in February that it was working on Super Follows subscriptions, which will allow you to charge a fee for viewing exclusive content
These features are intended to assist Twitter in moving away from targeted advertisements and toward generating commission income from user donations. Furthermore, content producers would directly profit from having another way to monetize their media items
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