Twitter will report its Q1 results on Thursday (April 29). The company, like its ad-supported social competitors Snapchat and Facebook, is expected to benefit from brands ramping up ad spending after pulling back in 2020. For example, Omnicom and Publicis, two of the biggest ad holding companies globally, just beat Q1 revenue expectations.
But another important Twitter storyline to follow will be how effective the company’s more aggressive product diversification strategy has been in recent months — something management is likely to address in its earnings call. Twitter, notoriously slow among the major social networks to make big changes to its core service, has recently become more ambitious in launching new features.
Since last June, the company has started testing voice tweets and launched its Stories clone, Fleets, globally. Most notably, Twitter in December started testing its Clubhouse-like product, Spaces. In the recent words of Twitter consumer product head Kayvon Beykpour, the company has been “taking bigger and bigger swings” to accomplish goals such as boosting conversation and discoverability of relevant topics (on Twitter).
However, just how much these swings have paid off will come under greater scrutiny as time passes. Fleets still doesn’t seem to be a feature that’s been widely adopted by U.S. Twitter users, separate recent surveys conducted exclusively for VIP by YouGov have shown.
Twitter is due for one of its recently announced features to become widely adopted, as that could result in an influx of new users. That could help Twitter continue the trend of its improving year-over-year growth rate in recent years.
This is part of a series of Variety Intelligence Platform’s Q1 2021 earnings previews for the biggest tech and media companies. For a complete list of the companies VIP has analyzed in advance of the Q1 earnings season, read our most recently published special report, “Q1 Preview: 2021 Financial Outlook for Key Media & Tech Companies.”