Business / Business News

AFP
Wire Service
1 minute read
30 Apr 2020
1:59 pm

Twitter swings to loss despite user surge in pandemic

AFP

In its quarterly update, Twitter posted an $8 million loss while revenues edged up three percent to $808 million and its user base increased 24 percent.

Twitter saw a jump in new users in the past quarter amid a global pandemic but posted a net loss as ad revenue softened. AFP/File/JOSH EDELSON

Twitter swung to a loss in the past quarter as the global pandemic hit advertising revenue, even as the social platform saw a surge in new users.

In its quarterly update Thursday, Twitter posted an $8 million loss while revenues edged up three percent to $808 million and its user base increased 24 percent.

Chief executive Jack Dorsey said the platform was working to be a useful resource for people during the global lockdowns.

“In this difficult time, Twitter’s purpose is proving more vital than ever,” he said.

“We are helping the world stay informed, and providing a unique way for people to come together to help or simply entertain and remind one another of our connections.”

The results appeared to ease concerns of deeper problems for the tech company, and Twitter shares jumped more than nine percent in pre-market trade.

Twitter said ad revenue was essentially flat in the quarter, with the pandemic hitting economic conditions in March.