Twitter: swings to loss despite growth in users
(CercleFinance.com) - Twitter on Thursday reported strong growth in user numbers, but also swung to a loss in the second quarter as investments rose and ad revenue fell.
The San Francisco based company said its daily user base jumped 34% year-on-year to 186 million in the three months to 30 June, helped by growth in international users.
However, the social media company posted a net loss of 1.2 billion dollars, due to a deferred tax asset valuation allowance of 1.1 billion dollars.
Twitter also said its revenue dropped by 19% to 683 million dollars, hit by a significant decrease in global advertising spend due to the pandemic.
Meanwhile, costs and expenses totalled 807 million dollars, up 5% year-on-year, due to increased hiring and R&D investment, which resulted in an operating loss of 124 million dollars.
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