Twitter's Q2 2020 Earnings missed analyst expectations
On Thursday Twitter announced it's Q2 2020 Earnings that missed analyst expectations on revenue and beat on active users.
The report comes one week after Twitter suffered a serious hack compromising the accounts of major figures including former President Barack Obama and Tesla CEO Elon Musk.
Last quarter, Twitter offered few signs of recovery after advertising spending took a hit at the start of the pandemic in the U.S. in March.
We understand our responsibilities and are committed to earning the trust of all of our stakeholders with our every action, including how we address this security issue. We will continue to be transparent in sharing our learnings and remediations. $TWTR— Twitter Investor Relations (@TwitterIR) July 23, 2020
Twitter hadn’t provided any guidance ahead of its latest earnings, largely due to the impact COVID-19 is having on a business that relies mostly on advertising dollars. However, the consensus estimate for Twitter’s income was around $708 million.
In a letter to the shareholders, Twitter said, "We understand our responsibilities and are committed to earning the trust of all of our stakeholders with our every action, including how we address this security issue. We will continue to be transparent in sharing our learnings and remediations."
"We saw a gradual, moderate recovery relative to March levels throughout most of Q2, with the exception of late May to mid-June, when many brands slowed or paused spend in reaction to US civil unrest," the company added.
The platform garnered $683 million revenue in Q2, down 19% year-over-year. Total costs and expenses grew 5% year over year to $807 million.
Twitter grew Monetizable Daily Active Usage (mDAUs) 34% year over year in the quarter, the highest rate since it began reporting the metric. It attributed the growth in large part to shelter-in-place orders around the world and more global discussion about the pandemic and other major events.
Twitter has been experimenting with virtual events to spark conversation as large sporting events have been canceled.
You can access the entire letter here.