Twitter Warns Of COVID-19 Impact On Q1 Results

(RTTNews) - Twitter Inc. (TWTR) said it now expects operating loss in the first-quarter, and quarterly revenue to be down slightly on a year-over-year basis, citing the impact of the COVID-19 pandemic.

"Twitter had a strong start to the year before the effects of COVID-19 began spreading more broadly...... it has impacted Twitter's advertising revenue globally more significantly in the last few weeks," said Ned Segal, Twitter's Chief Financial Officer.

While announcing the fourth-quarter results, Twitter had expected operating income to be between break even and $30 million and total revenue of $825 million - $885 million for the first-quarter.

The social media giant today said it withdrew its prior operating income and revenue guidance for the first quarter of 2020, due to the growing impact of the COVID-19 on the global operating and economic environment and their effect on advertiser demand.

The company also withdrew its full year outlook for expenses, stock-based compensation, headcount, and capital expenditures.

Twitter noted that in the first quarter, global conversation about COVID-19 as well as ongoing product improvements were driving strength in total monetizable daily active users (mDAU). The quarter-to-date average total mDAU reached about 164 million, up 23% from 134 million in the first-quarter of 2019 and up 8% from 152 million in the fourth-quarter of 2019.

Twitter expects to release financial results for the first quarter on April 30, 2020.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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