Twitter now has nearly 200 million daily active users
Twitter posted its income report for the first quarter of 2021 and it shows how people have started spending more time on social media since the outbreak of the COVID-19 pandemic. The company reported 199 million daily active users in the first quarter of 2021. This is a 20% increase year-over-year (year-over-year) from 166 million in the same period last year. This is also an increase of 3.6% quarter on quarter (QoQ) compared to 192 million daily active users in the previous quarter (Q4 2020).
However, Twitter has grown faster in international markets than in the United States. The microblogging platform had 38 million daily active users in the United States in the first three months of the year. This figure for the first quarter of 2020 and the fourth quarter of 2020 amounts to 33 million and 37 million respectively. This marks a 15% year-over-year increase and a 2% increase in QoQ for daily active users in the first quarter of 2021.
On the other hand, the platform saw an increase of 22% year-on-year and 4.5% increase in QoQ of daily active users in international markets during the same period, reaching 162 million in the first quarter of 2021, compared to 133 million in the first quarter of 2020 and 155 million in the fourth quarter of 2020. Note that figures may not add up correctly due to rounding.
Twitter gained a lot of new users during the height of the pandemic
Twitter said this global increase in the number of daily active users over the past year was due to “continuous product improvement and the global conversation about current events,” suggesting that more people have turned to to the platform to discuss the US presidential elections and other polarizing events. People are also using social media more as the current COVID-19 pandemic has restricted actual social interactions.
However, the company expects this growth rate to decline in the coming quarters. While the number of daily active Twitter users may continue to increase throughout the year, the growth may not be as fast as last year. The second quarter could see the lowest growth rate in 2021.
Growing user base means Twitter also reported a significant 28% year-over-year increase in revenue in the first quarter of 2021. First-quarter revenue totaled $ 1.04 billion, with advertising revenue at these alone totaling $ 899 million, an increase of 32% over one year. Updated ad formats, improved metering, and new brand security controls have helped Twitter increase ad revenue, suggested Ned Segal, Twitter’s chief financial officer.
Again, revenue growth in the United States was lower than in international markets. Revenue in the United States totaled $ 556 million, an increase of 19% year-on-year. On the other hand, international revenue grew 41% year-on-year to $ 480 million in the first quarter of 2021.
This strong revenue growth means Twitter posted operating income of $ 52 million and net income of $ 68 million in the last financial quarter. This represents an operating loss of $ 7 million and a net loss of $ 8 million over the same period last year.