Twitter has released its first quarter earnings for the year 2021. The company reported revenue of $1.04 billion for the quarter, up 28% year over year, reflecting strength in brand advertising in March as well as accelerating year-over-year growth in Mobile App Promotion (MAP) revenue. Ad revenue for the first quarter grew by 32% to reach $899 million and its total ad engagements increased 11% year over year. “Advertisers continue to benefit from updated ad formats, improved measurement, and new brand safety controls, contributing to 32% year-over-year growth in ad revenue in Q1,” Ned Segal, chief financial officer, Twitter, said.
The company said that it was still too early to understand the full impact of Apple’s iOS 14.5 changes, but added that its integration with a new ad measurement tool from Apple, SKAdNetwork has allowed it to reach a new audience, increasing the total number of iOS devices to which the company can advertise by 30%.
According to Jack Dorsey, chief executive officer, Twitter, people turn to the platform to see and talk about what’s happening, and the company is helping them find their interests more quickly while making it easier to follow and participate in conversations. “Average monetizable DAU (mDAU) reached 199 million, up 20% year over year and up 7 million sequentially, driven by ongoing product improvements and global conversation around current events,” he added. In the first quarter, the company focused on giving creators more tools to start interesting conversations with the expansion of Twitter Spaces, the acquisition of Revue, and improvements to how people share and view media on Twitter.
In the second quarter, the company stated that it is expecting total revenue to be between $980 million and $1.08 billion. User growth will begin to slow down in the coming quarters as the company expects to increase users in ‘low double digits on a year over year basis for the rest of 2021.