Home Business Twitter records a 28 per cent increase in advertising revenue

Twitter records a 28 per cent increase in advertising revenue

by Blessing Ubani
Twitter records a 28 per cent increase in advertising revenue

Twitter announced on Tuesday that it recorded a $1.29 billion in advertising revenue,  a 28 per cent increase in revenue in the fourth quarter of 2020 compared to the previous year. 

Profit for the quarter was at $222 million, bolstered by a turnaround in income after a significant drop in advertising spending earlier in 2020. 

The social media company lost $1.14 billion for the year, but there was an improvement in the fourth quarter which indicates that it has recovered from the dip in advertising revenue in the early days of the pandemic.

Although advertisers have returned to Twitter and revenue from ads has increased, investors are worried that Twitter’s advertising features are not keeping pace with social media competitors like Facebook and Snap.

Twitter’s daily active users who saw ads grew 26 per cent to 192 million in the fourth quarter, which is one million less than analysts had anticipated.

According to Jack Dorsey, Twitter’s chief executive officer, he said: “2020 was an extraordinary year for Twitter, We are more proud than ever to serve the public conversation, especially in these unprecedented times.”

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