Twitter Third Quarter Revenue Rises, Income Falls

Q3 Results

TWITTER third quarter 2020 revenue rose 14% year-to-year to $936 million with advertising revenue up 15% to $808 million and cost per engagement down 9%. U.S. revenue was up 10% to $513 million, with international revenue up 18% to $424 million. Operating income rose from $44 million to $56 million. Daily audience grew by 42 million, while net income fell from $37 million to $29 million (5 to 4 cents/diluted share).

"We have grown our daily audience by 42 million in the last year as people all around the world come to TWITTER to find out about the topics and events they care about most. I'm pleased mDAU grew 29% year over year to 187 million, driven by global conversation around current events and product improvements," said CEO JACK DORSEY. "We're helping people find trusted sources of information by better organizing and surfacing the topics and interests that bring people to TWITTER."

"Advertisers significantly increased their investment on TWITTER in Q3, engaging our larger audience around the return of events as well as increased and previously delayed product launches, driving revenue to $936 million, up 14% year over year," said CFO NED SEGAL. "We also made progress on our brand and direct response products, with updated ad formats, improved measurement, and better prediction. We remain confident that our larger audience, coupled with ongoing revenue product improvements, new events and product launches, and the positive advertiser response to the choices we've made as we have grown the service, can drive great outcomes over time."

The company's earnings release said that OCTOBER is tracking like SEPTEMBER with the return of events and product launches, and warned that advertiser behavior is unpredictable as the election approaches but added, "we have no reason to believe that September's revenue trends can't continue, or even improve, outside of the election-related window."

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