Twitter's stock was down nearly 10% in after-hours trading on Thursday, after the company issued weak second quarter guidance on revenue growth. The tech giant also reported user growth just shy of Wall Street expectations.
Yes, but: Twitter still reported strong ad sales growth, a sign of the resiliency of its core business throughout the pandemic.
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Details: Despite missing the mark on user growth, Twitter beat Wall Street estimates on revenue and earnings per share for the first quarter.
Ad sales, it said, were up 32% year-over-year, reaching $899 million.
On average, the company says it now has 199 million average monetizable daily active users (mDAU), up 20% year-over-year and up 7 million from the previous quarter.
It attributes user increases to "ongoing product improvements and global conversation around current events."
Twitter it says next quarter it expects to bring in revenues between $980 million and $1.08 billion.
By the numbers:
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: 199 million vs. 200 million expected forecast by FactSet
The big picture: Twitter was the last of the major ad-based tech giants to report first quarter metrics. Like its rivals, it addressed the Apple’s iOS 14.5 update, which is expected to impact the digital ad landscape broadly.
The company said while "it is still too early to understand the full impact of Apple’s iOS 14.5 changes," Twitter has integrated Apple's developer ad network into its programming interface, which has allowed it to reach more iOS devices, potentially helping to mitigate the impact of Apple's changes.
What's next: The company said it expects revenues to grow faster than expenses this year, even with Apple's changes.
Flashback: Twitter beats on earnings for Q4, says expenses will balloon
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Image source: The Motley Fool. FormFactor Inc (NASDAQ: FORM)Q1 2021 Earnings CallApr 28, 2021, 4:25 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorThank you and welcome, everyone, to FormFactor's First Quarter 2021 Earnings Conference Call.
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The stock has gained 12% this year, slightly ahead of the increase in the S&P 500 Index.Net income in the March quarter rose to $9.5 billion, or $3.30 a share, Facebook said. Analysts on average had projected $2.34 in per-share profit.In the statement, Facebook said sales in the current period will remain steady or accelerate from the first quarter, but repeated its caution that growth may stall in the second half of 2021. Facebook also again noted the potential risk to its advertising business as Apple Inc. adds privacy restrictions on iPhones and other devices that could chip away at the social media giant’s ability to collect user data, which powers its targeted advertising model.Apple’s iOS 14.5 software update is requiring apps to get explicit user permission to track their activity across the web. 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The audio products would include virtual rooms where users can host live discussions, and a feature called Soundbites that lets users post short audio snippets to their feeds like they would a photo or video.Recently, Facebook has been experimenting with different ways to bolster its video-advertising offerings to attract popular social-media influencers as it competes with younger rivals such as ByteDance Ltd.’s TikTok and Snap Inc. Facebook has said the number of content creators earning $10,000 a month from its revenue-sharing programs grew 88% in 2020, while creators pulling in $1,000 a month grew 94%.(Updates with details from Facebook’s AR/VR efforts beginning in the 12th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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