The corona crisis has caused Twitter to slide back into the red. While the microblogging service saw increased usage in the first quarter, advertising revenue fell at the same time.
Twitter has slipped into the red with the effects of the Corona crisis. The short message service closed the first quarter with a loss of $ 8.4 million. A year earlier, there was a profit of $ 191 million. Quarterly sales grew by three percent to $ 808 million, driven by business in the first few months, Twitter announced on Thursday. The company now wants to save costs by, among other things, slowing down the workforce. The stock fell about three percent in pre-exchange US trading.
Twitter had already warned a month ago that the crisis would increase the use of the service, but at the same time depress ad revenues. In the current situation, companies spend less money on advertising. Ads around tweets are the core of Twitter’s business model.
The number of daily users
The number of daily users that the service can reach with its advertisements rose from 152 million to 166 million within three months. For some time now, Twitter has only mentioned the number of users who receive advertisements from the company. Twitter no longer mentions the total number of active users.
The crisis came at a very bad time for Twitter boss Jack Dorsey. He had only saved his job in early March through a deal with investors. Among other things, the agreement with the financial investor Elliott, who originally wanted to change management, provides that Twitter must increase advertising revenues and secure a higher share of the online advertising market. Twitter now wants to focus on well-functioning ad products, among other things.