While the growth in active user base on the platform has slowed down since the last quarter, advertising on the platform is flourishing with a significant increase in ad revenue year-over-year. Here are more of such highlights from Twitter Q3 Report 2020.
Ned Segal, CFO, Twitter, mentions “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.”
Twitter has recently been upgrading ad products on the platform, such as the launch of a new Tweet Composer for advertisers, and more. The growth is cited to be pushed by progress on brand and direct response products, re-equipped ad formats, and improved measurement.
In India, the company recently launched Twitter ArtHouse, a hub of creatives and a suite of services to assist brands and advertisers in molding strategies, conceptualizing campaigns, and creating Twitter-first content, and improve brand communications.
Twitter believes the revenue product improvements and advertiser demands during the holiday season would churn out a positive fourth quarter. Although the platform also mentions that the US Elections-related period holds uncertainty.
Here are the highlights from Twitter Q3 Earnings Report 2020
- Q3 revenue totaled $936 Mn, an increase of 14% year over year
- Advertising revenue totaled $808 Mn, up 15% year over year
- Total ad engagements increased 27% year over year
- Cost per engagement (CPE) decreased 9% year over year
- Data licensing and other revenue totaled $128 Mn, an increase of 5% year over year
- US revenue totaled $513 Mn, an increase of 10% year over year
- International revenue totaled $424 Mn, an increase of 18% year over year
- Q3 net income was $29 Mn, representing a net margin of 3% and diluted EPS of $0.04. This compares to net income of $37 Mn, a net margin of 4%, and diluted EPS of $0.05 in the same period of the previous year.
- Average mDAU was 187 Mn for Q3, compared to 145 Mn in the same period of the previous year and compared to 186 Mn in the previous quarter
- Average US mDAU was 36 Mn for Q3, compared to 30 Mn in the same period of the previous year and compared to 36 Mn in the previous quarter
- Average international mDAU was 152 Mn for Q3, compared to 115 Mn in the same period of the previous year and compared to 150 Mn in the previous quarter