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Twitter’s ad revenue up 24% in Q4 2021 financial results


Twitter, Inc. today released its financial results for its fourth quarter and fiscal year 2021.

Twitter’s 2021 revenue was US$5.08 billion (A$7.08 billion), an increase of 37% year-on-year. 2021 operating loss of US$493 million (A$687 million). See Twitter’s Q3 2021 results here.

During 2021, Twitter’s net loss was US$221 million (A$308 million), representing a net margin of minus 4% and diluted EPS of ($0.28). The platform’s 2020 net loss of US$1.14 billion (A$1.59 billion), includes a deferred tax asset valuation allowance of US$1.10 billion (A$1.53 billion) and corresponding non-cash income tax expense based primarily on cumulative taxable losses driven primarily by COVID-19, representing a net margin of minus 31% and diluted EPS of ($1.44).

Q4 revenue totaled US$1.57 billion (A$2.19 billion), an increase of 22% year-on-year or 23% on a constant currency basis.

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Advertising revenue totaled US$1.41 billion (A$1.96 billion), up 22% year-on-year or 24% on a constant currency basis. Total ad engagements decreased 12% year-on-year. Cost per engagement (CPE) increased 39% year-on-year.

Data licensing and other revenue totaled US$154 million (A$214 million), an increase of 15% year-on-year.

US revenue totaled US$885 million (A$1.23 billion), an increase of 21% year-on-year. International revenue totaled US$683 million (A$952 million), an increase of 23% year-on-year or 26% on a constant currency basis.

Q4 costs and expenses totaled US$1.40 billion (A$1.95 billion),an increase of 35% year-on-year. This resulted in operating income of US$167 million (A$232 million) and 11% operating margin, compared to operating income of US$252 million (A$351 million) and 20% operating margin in the same period of the previous year.

Q4 net income was US$182 million (A$253 million), representing a net margin of 12% and diluted EPS of $0.21. This compares to net income of US$222 million (A$309 million), a net margin of 17%, and diluted EPS of $0.27 in the same period of the previous year.

Twitter CEO, Parag Agrawal noted: “Our strong 2021 performance positions us to improve execution and deliver on our 2023 goals. We are more focused and better organized to deliver improved personalization and selection for our audience, partners, and advertisers.”

Twitter’s CFO, Ned Segal added: “Twitter had a solid fourth quarter to finish 2021, with over US$5 billion in annual revenue, up 37% for the year.

“There are no changes to our goals of 315 million average mDAU in Q4 2023 and $7.5 billion or more revenue in 2023. Our increased focus on performance ads and the SMB opportunity after the sale of MoPub positions us even better for 2022 and beyond.”

Looking forward for Q122, Twitter expects its total revenue to be between US$1.17 billion (A$1.63 billion) and US$1.27 billion (A$1.77 billion), and GAAP operating loss to be between US$225 million (A$314 million) and US$175 million (A$244 million).

For FY22, Twitter expects stock-based compensation expenses to be between US$900 million (A$1.25 billion) and US$925 million (A$1.29 billion). Capital expenditures to be between US$900 million (A$1.25 billion) and US$950 million (A$1.32 billion).



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