Twitter says Apple privacy changes had less of an impact than expected on third-quarter results
Jack Dorsey creator, co-founder, and Chairman of Twitter and co-founder & CEO of Square speaks on stage at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
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Twitter’s stock price was up more than 2% on Tuesday after the company reported its third-quarter earnings, meeting analysts’ expectations for revenue and user growth.
The company said it was taking a one-time litigation-related net charge of $766 million related to an $809.5 million settlement the company announced in September for allegedly misleading investors about user growth.
Here’s what Twitter reported versus Wall Street’s estimates:
Earnings: 54-cent loss per share, adjusted.Revenue: $1.284 billion vs. $1.285 billion as expected by analysts polled by Refinitiv.Monetizable daily active users (mDAUs): 211 million vs. 211.9 million as expected by analysts polled by StreetAccount.
Because of the legal settlement, Twitter reported a net loss of $537 million, compared to a profit of $29 million a year ago.
Revenue increased 37% in the quarter from a year earlier. Twitter said the impact of Apple’s iOS privacy change was less than expected in the period, and will be modest in the fourth quarter. Snap and Facebook both cited Apple’s new iOS 14 privacy features as the main reason for business disruption in the latest quarter.
Twitter ‘s ad revenue rose more than 41% to $1.14 billion, with total ad engagements increasing 6% from a year earlier.
Twitter provided additional detail 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. Twitter said it doesn’t expect to recoup the full revenue loss of $200 million and $250 million next year from the deal.
The company said it’s expecting revenue, including the MoPub business, of $1.5 billion to $1.6 billion in the fourth quarter. Analysts were projecting sales of $1.58 billion on average, according to Refinitiv.
Twitter’s total number of monetizable daily users grew by 5 million from the second quarter to 211 million. The user base was up nearly 13% from a year ago.
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