Twitter and Snap both reported higher than expected revenue growth for the first quarter, raising the possibility that the small social media firms are picking up extra ad revenue at the expense of Facebook. The social media giant is due to report its first quarter results on Wednesday.
Twitter brought in $787 million in revenue during the period, up 18% and above the range of $715 million to $775 million it had projected. Meanwhile, Snap delivered 39% growth in revenue to $320 million, well above analyst estimates that averaged $306 million. Their user growth picture was more mixed: Twitter’s daily users grew 11% but its monthly active users shrank, while Snap’s daily users inched up 2% on the previous quarter. One particular bright spot for Snap was that its cash burn came down sharply, to just $78 million from $268 million a year earlier.
The results ensure Facebook’s earnings will get even more attention. Facebook has faced complaints that advertising on the platform has become too costly given the results. And its image has taken a beating because of a cascading series of scandals around privacy, false news reports and other misinformation. Facebook’s ad revenue growth has already been slowing: whether it weakened more than expected will be closely watched.