A lot of the huge tech companies have seen a bump in usage and consumption induced by the Novel Coronavirus and our staying at home as a result.
For Twitter – the surge is usage has resulted in 32 million extra daily users compared to the start of 2019. The 166 million current daily users is also higher than 152 million reported in the last quarter.
Unfortunately for Twitter, this growth in users doesn’t solve the bigger issue for the tech company – profitability. From its inception, Twitter has always had a hard time making a profit and COVID-19 is introducing new problems in this regard.
Ad Revenue from March 11 to March 31 dropped by 27% as advertisers are willing to spend less at a time when consumers are faced with uncertainty regarding their jobs and financial security going forward.
Ultimately, overall revenue growth in Q1 hasn’t been able to change the company’s fortunes with the social media company posting a US$8.4 million loss.