On Thursday, Twitter Inc reported its highest growth of daily users this year who can view ads. Daily average monetization for Twitter’s active users has increased by 34% to 186 million. This is above analysts’ estimate of 176 million.
The company said growth was primarily driven by external factors including an increased conversation around the COVID-19 pandemic and shelter-in-place requirements. Whatsoever, with the economic slowdown, they have missed the Wall Street’s lowered expectations for quarterly revenue which has battered it’s largely events-oriented digital ads business.
Twitter has seen a drop in Ad sales revenue by 23% to $562 million which makes up about 82% of the company’s revenues. The drop is attributed to the pause in brand spending due to the pandemic and U.S. civil unrest. According to IBES data analysts from Refinitiv, they had expected $585 million.
Jack Dorsey, Chief Executive, opened the conference by apologizing for the hack. Moreover, in a company’s statement, Dorsey said they had taken steps to improve its “resiliency against targeted social engineering attempts.”
The company has struggled to build its ad offerings as it has left its reliant on a suite of promotional tools. These tools are geared toward advertising around product launches and big events which have completely vanished due to the pandemic.
Twitter has reported a loss of $1.2 billion in its second-quarter which is largely driven by the reversal of a tax benefit established last year. Twitter has failed to make enough money to take advantage of the tax benefit because of the second quarter’s steep coronavirus-related losses. The company has incurred a loss of $127 million as it adjusted to exclude the tax considerations.