Twitter stock climbs after company reports $1.29 billion in revenue last quarter

Shares of Twitter climbed more than 7% Wednesday after the company reported a record $1.29 billion in revenue during the fourth quarter of 2020, despite finding itself at the center of political turmoil in recent months.

Revenue increased 28% year-over-year and beat Wall Street expectations. In addition, the social media giant reported that its monetizable daily active usage base grew 27% last quarter to total 192 million.

"2020 was an extraordinary year for Twitter," Jack Dorsey, Twitter’s chief executive, said in a statement Tuesday. "We are more proud than ever to serve the public conversation, especially in these unprecedented times."

Dorsey also said the recent product changes "are promoting healthier conversations," adding that the company is "excited about our plans to continue innovating in 2021."

Still, the company reported a net loss of $1.14 billion in 2020 amid the pandemic-induced economic downturn.

Looking forward, however, the company said it expects to grow its headcount by more than 20% in 2021.

In the final months of 2020, Twitter teetered on a political tripwire as it navigated how to combat election misinformation on its site -- including from former President Donald Trump himself -- in the aftermath of the U.S. presidential election.

In January, a political firestorm erupted as Twitter and other social media companies made the decision to permanently ban Trump from their platforms.

Without naming names, Dorsey alluded to this decision during an earnings call Tuesday, saying that the platform is "much larger than any one topic or any one account."