As most companies across the world feel the adverse effects of the COVID-19 pandemic, so has Twitter, the company has registered record numbers all thanks to the current state of affairs and has also seen its revenues shrink thanks to the pandemic.
While companies across the globe cut back on ad spending due to harsh financial times due to the global pandemic, Twitter, which draws most of its revenues from ads, has consequently seen its profits dip by 19% in the second quarter of the year. According to its latest published Q2 2020 financial report, the company recorded $686 million in revenue compared to last year. The company also registered an operating loss of over $120 million compared to a $7 million loss in the first quarter of the year.
But hey…, on the other side of things, the tech giant has reported a considerable increase in ‘monetizable daily active users’ more than 180 million users registering a 34% increase from the 139 million recorded in the second quarter of last year. The rise in user numbers is primarily attributed to the lock-down and other global events that have seen more users using the platform to access information or keep in touch with each other due to distancing.
Twitter, which is recovering from a massive hack, that threatens to have long-lasting negative impacts on the platform, is reportedly working on a new subscription platform and is recruiting teams to work on the platform. The new model is an attempt by the company to expand revenue channels beyond advertising. “We are also in the early stages of exploring additional potential revenue product opportunities to compliment our advertising business,” Twitter confirmed subscription reports through a letter to shareholders.
Though the company is not expecting to draw any revenue from the subscription model this year, it has indicated in the letter to shareholders that they would be seeing “tests or hear us talk more about them as our work progresses.”
New Album: Apollo Brown & Che’ Noir -As God Intended