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Twitter’s user growth soars amid coronavirus pandemic

gadgetnews by gadgetnews
April 30, 2020
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Twitter reported its first-quarter earnings on Thursday morning.

James Martin/CNET

For the most up-to-date news and information about the coronavirus pandemic, visit the WHO website.

Twitter added daily users in the first quarter as people turned to the site for real-time information during the coronavirus outbreak, a growth spurt that gave the service an opportunity to serve up more digital ads.

Twitter had 166 million daily active users who got served ads, a 24% uptick compared to 134 million in the same period last year, the company said Thursday. 

In the first quarter, which ended March 31, Twitter raked in $808 million in revenue, up 3% year over year, and well above the $775.96 million that analysts surveyed by Thomson Reuters estimated. Revenue from advertising makes up the bulk of that; it came it at $682 million, up slightly from a year earlier.

The company posted a loss of 1 cent per share, beating a loss of 2 cents per share that was forecast by Wall Street analysts.

Twitter had dialed down expectations in March when it withdrew its first-quarter guidance because of the coronavirus outbreak, which has slowed economies and prompted lockdowns around the world. At the time, the company indicated first-quarter revenue would be down year over year.

The company said it remains committed to building a new data center, but the timing could be affected by IT supply chain constraints and as it spends on existing facilities to address heightened demand for its service.

“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,” Dorsey said in a statement. “Our task now is to make sure we retain that connection over the long term with the many people new to Twitter.”

Also in the first quarter, Twitter CEO Jack Dorsey also faced a threat to his leadership. Paul Singer, the billionaire founder of the activist hedge fund Elliott Management wanted to possibly oust Dorsey from the company. The fund reached an agreement with Twitter that kept Dorsey in charge of the social network. 

In premarket trading, Twitter shares were up better than 1% to about $31.50.

Combating coronavirus misinformation

The pandemic has forced Twitter, like other social networks, to focus on misinformation that could harm user health and safety, such as claims that drinking bleach will cure the coronavirus. 

Unlike rival Facebook, which partners with third-party fact checkers, Twitter doesn’t have as large of a team dedicated to moderating the site. Instead, the company has relied on automated technology to deal with misinformation. On Wednesday, Facebook reported that its first-quarter revenue and user numbers beat Wall Street expectations.

In March, Twitter said it would require users to pull down tweets that contradict the recommendations of local and global health authorities or encourage the use of ineffective or harmful treatments. That includes tweets that state “social distancing is not effective” and “if you can hold your breath for 10 seconds, you do not have coronavirus,” Twitter said. 

Twitter has warned that harmful coronavirus misinformation might still slip through the cracks because it’s prioritizing information that has the most potential of directly causing harm. The company has left up racist tweets aimed at Asians.

Twitter’s rules also apply to politicians. The company pulled down two tweets by Brazil’s President Jair Bolsonaro that reportedly included videos of the politician questioning social distancing and quarantine measures. The company deleted a tweet by Venezuelan dictator Nicolás Maduro for recommending the use of a “natural brew” as a potential cure for the coronavirus. 

And Twitter removed a tweet from Rudy Giuliani, President Donald Trump’s personal attorney, that quoted a conservative activist falsely claiming that a drug called hydroxychloroquine has been found “100% effective” in treating COVID-19. There have been anecdotal reports it could have some benefit, according to the US Department of Health and Human Services, but clinical trials are still needed to prove whether the drug is effective.

Still, Twitter has left up controversial tweets by several high-profile figures. For example, Tesla CEO Elon Musk tweeted that “kids are essentially immune” from COVID-19. And Trump called for the “liberation” of three states in which people protested coronavirus lockdowns, a message Twitter allowed because the remarks were vague.

In April, Twitter said it removed more than 1,100 misleading and potentially harmful tweets since March 18 when it released new guidance about what’s considered harmful on the site. 

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