Twitter releases updates on quarterly performance for Q4, topping analysts’ estimates.
Revenue stood at $1.3 billion, which translates to 28% from the same period in the prior year.
The social networking site has also made significant progress from the brand and direct response engagement.
During the last three months of the year, total ad revenue grew by 31% year on year.
Its Mobile Application Promotion or MAP surpassed the revenue lead after recording a 50% YoY growth.
Following the upward trend, the monetizable daily active users reached 192 million. This is up by 27% from the same quarter last year.
According to San Francisco, a California-based company, the hike in earnings is driven by imperative progress on new ad formats.
Similarly, it also made an advance to achieve a stronger attribution and improved targeting, which all yielded positive results.
TWTR is convinced that the improvements helped the firm serve a wider-range of advertisers, with both parties benefiting on their end.
It is positive that momentum will carry through the first quarter of 2021, where revenue growth is likely to accelerate.
Chief Executive Officer Jack Dorsey said that that he is proud of how the firm navigated the pandemic-ridden year and ended 2020 with a positive result.
For the record, this is the microblogging platform’s first revenue update since the banning of Trump from its premises.
In a statement, the former resorted to the restriction of the former US president’s account due to the riot in Capitol Hill.
Shares Hiked along with the Earnings Report
The significant progress detailed on its earnings report after the bell on Tuesday buoyed TWTR stocks.
Shares initially fell along with the release of the update before gaining momentum later on. It ended the session with a 2.87% hike to $59.87.
In the after-hour charts, the firm garnered a 3.46% hike to $61.94 per share, indicating that the market is jovial over the update.
In a more detailed update, the tech juggernaut reported 38-cent per-share earnings from a revenue of $1.29 billion.
According to Twitter, it expects its total revenue to grow at a faster pace than expenses in the incumbent year.
Also, the macroeconomic environment will be a major determinant of how it will execute its direct response roadmap for the year.
Last month, the firm acquired startup Revue which allows writers and publishers to post editorial newsletters.
This is believed to be an advance to enhance public conversation on fact-based, reliable news without the need for another third-party app.