Twitter’s third-quarter financial report released today shows that revenue and user growth have reached analyst expectations. Because of this, Twitter’s stock price rose by more than 3% after the financial report was announced.Twitter’s third-quarter net profit increased by 37% year-on-year. The impact of the iOS privacy policy is currently smaller than expected, and the impact in the fourth quarter is not too great. Both Snap and Facebook say that Apple’s policies have a great impact on the business. In the third quarter, Twitter advertising revenue increased 41% year-on-year to 1.14 billion U.S. dollars, and total advertising interaction volume increased by 6% year-on-year.
Because it misled investors in terms of user growth, Twitter included a one-time litigation-related net cost of US$766 million in September, which was mainly related to a settlement of US$809.5 million.
In the third quarter, Twitter adjusted its loss of 54 cents per share and revenue of 1.284 billion US dollars. Refinitiv survey analysts estimated it to be 1.285 billion US dollars; mDAUs (profitable daily active users) reached 211 million, while StreetAccount survey analysts estimated the number to be 211.9 million.
Due to legal proceedings, Twitter’s net loss in the third quarter was US$537 million, compared with a net profit of US$29 million in the same period a year ago.
In the fourth quarter, Twitter expects revenue to be between 1.5 to 1.6 billion U.S. dollars, including MoPub business revenue. At the beginning of the month, Twitter had announced that it would sell MoPub to AppLovin for US$1.05 billion, and the transaction is expected to end in the first quarter of 2022.
Unlike its rivals, Twitter CEO believes that the advertising demand of the platform does not seem to be affected by the tight global supply chain. why? Because more than half of Twitter ads in 2021 are related to services and digital products.
Compared with the second quarter, mDAUs in the third quarter increased by 5 million to 211 million.
