Twitter reported Tuesday (Feb. 9) as part of its fourth quarter and fiscal 2020 earnings results that revenue increased 28 percent year over year in Q4, as its ad revenue surged.
The social media company brought in $1.15 billion in ad revenue for Q4, marking a 31 percent year-over-year rise. Average monetizable daily active usage (mDAU) reached 192 million in Q4, up 27 percent year over year. By contrast, the company reported in October that mDAU reached 187 million in Q3, up by a slightly higher 29 percent year over year.
“In Q4, we helped new and reactivated accounts build a more durable and sustainable connection with Twitter by using real-time signals around interest and intent to significantly improve content personalization and discovery in their first few days on Twitter,” Twitter said in a letter to shareholders.
The company said it saw advertisers bolster investments through both brand and direct response in the quarter. And, on Monday (Feb. 8), the company revealed the rollout of its rebuilt Mobile Application Promotion (MAP) offering and “website clicks objective.” Its latest MAP offering reflects over 30 product improvements throughout “campaign management, quality supply, ad formats, optimization and measurement,” according to the letter.
The company’s earnings come on heels of a Bloomberg report that multiple Twitter workforces are looking into subscription products. Chief Financial Officer Ned Segal addressed subscriptions in the Q&A portion of the company’s earnings call.
“We love talking about subscriptions and the potential and the durability they can provide and predictability to our revenue streams, but we also maintain a big focus around our revenue products, and we feel really good about the pace of innovation that we’re delivering around that now,” Segal said on the call.
As for its overall results, Twitter reported non-GAAP diluted net income per share of 38 cents on $1.29 billion in revenues. The results exceeded analyst estimates of 31 cents in earnings on $1.19 billion in revenues.
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