Twitter has warned of lower revenues and an operating loss in the first quarter, as the Covid-19 outbreak dampens advertising revenues. The company said it was withdrawing its previous guidance in the first quarter as well estimates for expenses, stock-based compensation, headcount and capital expenditures for the full year due to the growing impact of the pandemic on the economic climate and advertiser demand.
While the near-term financial impact of the pandemic is rapidly evolving and difficult to measure, based on current visibility, the company said it expects Q1 revenue to be down slightly on a year-over-year basis. It previously forecast growth of 5-12 percent for the period. Twitter also expects to incur an operating loss, compared to previous guidance of breakeven to a profit of USD 30 million, as reduced expenses resulting from the Covid-19 disruption are unlikely to offset fully the revenue impact of the pandemic in Q1. the company said.
Twitter continues to grow its user base, with quarter-to-date average total mDAU reaching 164 million, up 23 percent year-on-year and 8 percent more than in Q4 2019. The company said it's also seeing increased usage, and had a strong start to the year before the pandemic struck in March.
The company will provide an update on its Q1 earnings call on 30 April.
