Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Price hike for .za domains

      9 July 2025

      The satellite broadband operators taking on Starlink

      9 July 2025

      China’s Temu ups ante with South African warehouse launch

      9 July 2025

      What Steve Jobs feared is now the tech industry’s reality

      9 July 2025

      Cape Town fintech Stitch in another blockbuster acquisition

      9 July 2025
    • World

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025

      Bumper orders for Xiaomi’s YU7 SUV heighten threat to Tesla

      27 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Twitter disappoints while rivals make hay amid pandemic boom

    Twitter disappoints while rivals make hay amid pandemic boom

    By Agency Staff30 April 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Twitter gave a disappointing revenue forecast, a sign the social media service hasn’t fully capitalised on the digital advertising boom amid the pandemic like companies such as Facebook and Google. Shares fell about 8% in extended trading.

    Sales will be US$980-million to $1.08-billion in the second quarter, the San Francisco-based company said on Thursday in a statement. Analysts, on average, projected $1.05-billion.

    Twitter’s sales gained 28% in the first quarter, notably lagging behind some of its digital advertising peers. Facebook and Google this week reported quarterly revenue that smashed analysts’ estimates, buoyed by businesses pushing commerce and travel, which are expected to bounce back as lockdowns ease. Twitter relies more on big-brand advertising, which is typically slower early in the year after the busy holiday quarter.

    The stock dropped to a low of $58.50 in extended trading after closing at $65.09 in New York. The shares have gained 20% this year

    Those peers set the bar high for Twitter, leading to disappointment in the results, said Mandeep Singh, an analyst at Bloomberg Intelligence. “It goes to show that probably Google and Facebook had more exposure to e-commerce advertising than Twitter,” he said.

    Twitter also reported that daily active users increased 20% to 199 million, adding seven million since the previous quarter. The company in February estimated year-over-year growth would be 20% in the March quarter, which was the first period since former US President Donald Trump was banned from the service. Trump was kicked off Twitter on 6 January for repeated violations of the company’s rules, and some analysts were concerned that the former president’s absence might hurt the business.

    Shares fall

    Revenue was $1.04-billion in the three months ended 31 March, matching analysts’ average estimate. Net income was $68-million, or $0.08/share, from a loss of $8.4-million, or $0.01, in the quarter a year earlier.

    The stock dropped to a low of $58.50 in extended trading after closing at $65.09 in New York. The shares have gained 20% this year.

    Twitter has been at the centre of public discussion for much of the year, in part because of its ban of Trump and the scrutiny from the US congress over its role with other social media sites in policing user speech. The company is also working on several new products, including audio chatrooms to compete with the popular startup Clubhouse, which could lead to more future revenue.

    User growth will begin to slow down in the coming quarters as Twitter compares itself to last year’s boom driven by the global pandemic and a contentious US election. The company expects to increase users in “low double digits” percentages for the rest of 2021, according to Twitter’s shareholder letter. Those projections were previously announced in February.

    The pandemic hasn’t slowed Twitter’s hiring. The company now has 6 100 total employees, up 20% from a year ago. The surge in new employees has also increased the company’s stock-based compensation costs. Twitter increased its 2021 estimate for stock-based compensation to $600-million from a range of $525-million to $575-million previously reported.

    Although the company is building subscription products to complement its advertising business, it didn’t mention any new plans or details in Thursday’s shareholder letter.  — Reported by Kurt Wagner, (c) 2021 Bloomberg LP



    Facebook Google Twitter
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBackspace: ‘Facial recognition software’
    Next Article South Africa’s new debit order system comes into effect

    Related Posts

    What Steve Jobs feared is now the tech industry’s reality

    9 July 2025

    Apple’s AI ambitions rattled by defection to Meta

    8 July 2025

    Jony Ive’s first AI gadget could be … a pen

    30 June 2025
    Company News

    Webtonic cracks the talent code with AWS-powered TonicHub

    9 July 2025

    Wider than a Bok: LG’s new 100-inch QNED TV brings the big screen home

    9 July 2025

    Huawei South Africa Partners Forum 2025: joining hands for a digital, intelligent future

    8 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.