Twitter shares soar after the corporate says Apple’s privateness adjustments had much less of an affect on third-quarter outcomes than anticipated

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Jack Dorsey creator, co-founder and chairman of Twitter and co-founder and CEO of Square speaks on stage at the Bitcoin 2021 Convention, a cryptocurrency conference held at the Mana Convention Center in Wynwood, Miami on June 4, 2021. Florida.

Joe Raedle | Getty Images

Twitter’s share price rose about 3% Tuesday after the company announced its third quarter results, meeting analyst expectations for revenue and user growth.

The company said it had a one-time net charge of $ 766 million related to a $ 809.5 million settlement related to litigation that the company announced in September to investors regarding the Allegedly mislead user growth.

Here’s what Twitter reported against Wall Street estimates:

  • Merits: 54 cents loss per share, adjusted.
  • Revenue: $ 1.284 billion versus $ 1.285 billion as expected by analysts surveyed by Refinitiv.
  • Monetizable daily active users (mDAUs): 211 million versus 211.9 million as expected by analysts surveyed by StreetAccount.

Based on the court settlement, Twitter reported a net loss of $ 537 million, compared to a profit of $ 29 million last year.

Revenue for the quarter increased 37% year over year. According to Twitter, the impact of Apple’s iOS privacy change was less than expected during the reporting period and will be modest in the fourth quarter. Snap and Facebook both cited iOS 14’s new privacy features as the main reason for business disruption last quarter.

Twitter’s advertising revenue grew more than 41% to $ 1.14 billion, with total ad interactions increasing 6% year over year.

Twitter provided additional details on the sale of MoPub to AppLovin for $ 1.05 billion, which was announced earlier this month and is expected to close in the first quarter of 2022, with $ 250 million from the deal next year.

The company expects fourth quarter revenue, including the MoPub business, to be between $ 1.5 billion and $ 1.6 billion. According to Refinitiv, analysts expect sales averaging $ 1.58 billion.

Unlike Snap and Facebook, the demand for Twitter ads has not been affected by global supply chain issues, Twitter CFO Ned Segal said in a call with analysts. This is because more than half of Twitter’s advertising revenue in 2021 will be related to services and digital goods, Segal said.

The total number of monetizable daily users of Twitter rose 5 million from the second quarter to 211 million. The user base has increased by almost 13% compared to the previous year.

SEE: The Facebook trade

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