Twitter Forecasts Lower Revenues Even as Traffic Grows Because of Coronavirus
In a revised Q1 revenue guidance on Monday, Twitter said that it expects to postal service an operating loss during the current quarter in spite of increased traffic. In an official statement, the company's Chief Financial Officer, Ned Segal, said that the outbreak has reduced advertizement revenues fifty-fifty equally the company reported more daily active users (DAUs) with more than and more than people turning to social media for news, amusement and conversations every bit they stay indoors in line with social distancing guidelines.
"The COVID-19 touch on began in Asia, and every bit it unfolded into a global pandemic, it has impacted Twitter's advertising revenue globally more significantly in the last few weeks", Segal said. According to him, many advertisers have reduced their marketing budgets to rein in costs considering of the prevailing uncertainty related to COVID-nineteen, while others are hesitant to advertise aslope coronavirus discussions for fear of possible negative repercussions.
Twitter is scheduled to announce its Q1 results on April xxx, but every bit per the revised revenue guidance released Monday, the company's first quarter earnings volition exist down on a twelvemonth-over-year basis. Before the coronavirus situation turned into a total-blown pandemic, the company had estimated revenue to be between $825 million and $885 one thousand thousand, an increase of viii.6 percent from a year earlier.
Fifty-fifty as its revenues take a hit, Twitter is seeing its total users increase significantly every bit more people turn to social media to discuss their thoughts about the disease. According to Twitter'south co-founder and CEO, Jack Dorsey, the company's full monetizable daily active users (mDAU) jumped 23 percent to 164 million quarter-to-date, driven largely by conversations surrounding COVID-19. "Nosotros're seeing a meaningful increase in people using Twitter", he said.
Source: https://beebom.com/twitter-revenue-forecast-q1-2020-coronavirus/
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