Twitter investors look past warning of slower user growth and eye rising ad sales

Twitter Inc beat Wall Street targets for quarterly sales and profit and followed its social media peers to forecast a strong start to 2021 as ad spending rebounds from a rock bottom.
The solid beat, aided by ad product improvements, convinced investors to overlook a dull forecast for user growth, which Twitter expect to slow down to low double digits this year as a boost from the pandemic fizzles.
Total revenue came in at a record $1.29 billion, an increase of 28% year over year. Shares of the company were up nearly 3% in extended trading, adding to a 11% gain in stock so far this year.
The social media company said expenses would rise 25% or more in 2021 but projected that total revenue would grow faster than costs.
The social media company has been in the spotlight amid global debates over what is allowed on the site – from its recent refusal to comply with an Indian government directive to block accounts linked to the farmers’ protest to its ban on former U.S. President Donald Trump following the Capitol riot in January.
On an earnings call with analysts, CEO Jack Dorsey downplayed any impact from the much-debated January account closures.