Twitter has just announced its Q1 earnings for fiscal 2020. In the run-up to the results, there was much uncertainty around the social media company’s numbers considering last month Twitter withdrew its original Q1 2020 guidance due to the impact of COVID-19. In February, Twitter had originally said it expected Q1 total revenue to be between $825 million and $885 million, as well as its operating income to be between below a million dollars and up to $30 million.
Here’s how Twitter ended up performing:
- Twitter Q1 2020 diluted earnings per share: -1¢
- Twitter Q1 2020 revenue: $808 million
- Twitter Q1 2020 monetizable daily active users (mDAUs): 166 million
The all-important monetizable daily active users (mDAU) metric was up from 152 million at the end of Q4 2019 to 166 million this quarter—a rise of 14 million. Twitter also noted that mDAUs grew 24% year-over-year and credited “global conversation related to the COVID-19 pandemic” for some of that growth.
Revenue, however, came in at only $808 million, down from $1.01 billion last quarter. However, Twitter noted that year-over-year revenue was up 3%. The company said this reflected “a strong start to the quarter that was impacted by widespread economic disruption related to COVID-19 in March.”
The biggest disappointment for the quarter was the diluted earnings per share (EPS). Twitter had a Q1 diluted EPS of -1¢. That’s down from the 15¢ in the prior quarter. This is due to Twitter incurring a net loss of $8 million in the quarter.
Announcing Twitter’s Q1 earnings, Twitter CEO Jack Dorsey said:
In this difficult time, Twitter’s purpose is proving more vital than ever. We are helping the world stay informed, and providing a unique way for people to come together to help or simply entertain and remind one another of our connections. We’ve delivered our strongest ever year over year mDAU growth. Public conversation can help the world learn faster, solve common problems, and realize we’re all in this together. Our task now is to make sure we retain that connection over the long term with the many people new to Twitter.
For the quarter ahead, Twitter said it is not providing Q2 revenue or operating income guidance “given the unprecedented uncertainty and rapidly shifting market conditions of the current business environment.”
Twitter’s stock is currently up over 8% in pre-market trading at the time of this writing.