Twitter has announced its earnings for the first quarter of 2020, and has beaten all estimates. Twitter’s better-than-expected earnings follow a suit of similarly positive results from big tech companies, such as Facebook, Google, Microsoft among others.

Revenues for Q1 2020 stood at $808 million, which is a 3% increment on an year over year basis. Advertising revenue totaled $682 million, up approximately $3 million year-over-year. The Wall Street had estimated revenues around $776 million as per Refinitiv data. Twitter, on March 23rd, had revised its quarterly revenue forecast between $825 million and $885 million because of coronavirus-related uncertainty.

In terms of users, Twitter witnessed quite a surge, largely as people globally swarmed to the platform for authentic information on coronavirus. Among all popular social media platforms, Twitter has been one of the better ones when it comes to containing misinformation spread and helping users out with accurate information. And users, seem to have rewarded that behaviour. Daily users who can view ads grew 24% to 166 million, about 2 million above estimates.

“In this difficult time, Twitter’s purpose is proving more vital than ever. 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.”, said Twitter CEO Jack Dorsey during the company’s Earnings call.

Geography-wise, average US monetizable DAUs were 33 million for Q1, compared to 28 million in the same period of the previous year and compared to 31 million in the previous quarter. Average international monetizable DAUs were 133 million for Q1, compared to 105 million in the same period of the previous year and compared to 121 million in the previous quarter

In terms of losses too, Twitter performed better than what most Wall St. analysts had predicted. The company posted a net loss of $8 million, representing a net margin of -1% and diluted EPS of ($0.01). This compares to net income of $191 million, a net margin of 24% and diluted EPS of $0.25 in the same period of the previous year.

But there are few areas of concern for the company, as coronavirus-related impacts are expected to hit most companies in the second and third quarter of 2020. Twitter has refrained from providing guidance for Q2’20 on both financials as well as users. The company however, is not updating its previously withdrawn full-year outlook for expense and headcount growth, capital expenditures, or stock-based
compensation at this time.

There are budget cuts as well. Apart form capping capex related expenses, Twitter will limit hiring to product development, research and user support. Expense growth in 2020 is likely to be in “the low teens,” versus earlier plans to spend 20% more than last year, Twitter said.

Numbers were met with a cheer from investors, as Twitter shares surged as much as 8% in pre-market trading early on Thursday.