Twitter Inc. missed Wall Street’s expectations for user growth on Tuesday as it faced competition from rival apps like TikTok for people’s time, while it reported quarterly revenue in line with estimates.
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.
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.
The company said it saw a “slight” impact on ad revenue from the privacy changes Apple Inc. rolled out on iOS devices that prevent 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.
Snap and Facebook also reported third-quarter revenue that missed estimates, saying Apple’s privacy changes hurt their ability to target and measure digital ads.
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.
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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