Twitter Pulls Its First Quarter Guidance

Twitter said that COVID-19 has been a boon for its user counts, but that revenue will nonetheless fall slightly in the first quarter.
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Twitter withdrew its first-quarter guidance on Monday amid uncertainty over how the coronavirus pandemic will impact business operations. 

The company wrote in a press release that it expects revenue to fall slightly for the first quarter, and that it will also incur a GAAP operating loss from that loss of revenue. But it formally withdrew guidance for the current quarter as well as its outlook for expenditures "due to the growing impact of COVID-19 on the global operating and economic environment and their effect on advertiser demand."

"We'll continue to navigate this environment focusing on supporting our employees, customers, and partners, while strengthening our service for everyone around the world and adjusting to a new operating and economic environment," said Twitter CEO Jack Dorsey in a statement.

Twitter shares closed 3.05% higher on Monday to $24.69, and were roughly flat overall in after-hours trading following the announcement.

Although first quarter ad revenue is expected to fall, Twitter also said that the global conversation around coronavirus has driven strength in its monthly and daily active user counts.

Widespread stay-at-home orders and business closures have meant a spike in usage for various Internet platforms, including Twitter.

The company said in the release that quarter to date, its monetizable daily actives reached 164 million, up 23% year over year and up 8% sequentially. 

Twitter's first quarter earnings call is scheduled for the morning of April 30.