Twitter Inc. reported quarterly results on Tuesday, which avoided the brunt of Apple Inc. privacy changes over advertising that sent its rivals up to 3%.
The social networking site is working to add new features like audio chat rooms to attract users, and has also improved its advertising capabilities to reach its goal of doubling annual revenue by 2023.
Advertising revenue for the quarter ended September 30 was $1.14 billion, in line with consensus estimates.
The company said Apple saw a “slight” impact on ad revenue due to the privacy change, which prevents advertisers from tracking users on their devices without their consent.
Investors expected Twitter to be relatively spared from being hurt by the changes, as most of its advertisers don’t rely on highly targeted ads.
Twitter’s tech peers Snap and Facebook said Apple’s changes hurt their ability to target and measure digital ads, citing the update as why the companies fell short of revenue expectations.
According to Refinitiv’s IBES data, Twitter said monetizable daily active users, its period for advertising users during the third quarter stood at 211 million, missing analyst estimates of 212.6 million.
While Twitter grew its number of users outside the United States by 5 million from last quarter, its US base remained flat.
Total revenue, which includes money that Twitter earns from data licensing, was $1.28 billion, in line with Wall Street goals.
Twitter said hiring and investing in a new data center this year would see its costs flow next year, resulting in a 20% increase in total costs for 2022.
The company has forecast fourth-quarter revenue between $1.5 billion and $1.6 billion.
Twitter previously announced that it would sell its advertising technology unit MoPub, and the deal is expected to close in the first quarter of 2022.
The company said it does not expect it to be able to offset the revenue loss from selling MoPub next year, which is estimated to be between $200 million and $250 million, though it said the sale would push annual revenue through 2023. Doesn’t affect Twitter’s goal of doubling down.
Disclaimer: This post has been self-published from the agency feed without modification and has not been reviewed by an editor
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