Twitter warned user growth recorded in the opening quarter may slow over the remainder of the year due to being unable to maintain the rate of additions clocked during the height of the Covid-19 (coronavirus) pandemic.
The company reported 199 million daily active users (DAUs) in Q1, up from 166 million in the comparable period of 2020, with the international figure 22 per cent higher and US up 13 per cent.
In a letter to shareholders, CEO Jack Dorsey forecast annual growth “in the low double-digits” over the remaining quarters of 2021.
On the company’s earnings call, CFO Ned Segal said Twitter is focused on retaining the new users acquired during the pandemic.
He noted many events people have watched on Twitter will become available in-person as global lockdowns ease, explaining the company was working to ensure users continue to access the service for “rich conversation”, along with “sports and entertainment and investing”.
During the call, Dorsey offered an update on Fleets, the company’s mobile-only service which is similar to Snapchat, with content removed after 24 hours.
The CEO noted Fleets had brought a “different audience than we normally see”, adding Twitter has “much to learn”, including how it might generate revenue from the service.
During Q1, Twitter overturned a net loss of $8.4 million with a $68 million profit, on revenue of $1.04 billion, up 28 per cent.