Earnings Results: Twitter adds users, sees revenue rise as it avoids being bogged down by Apple change
Twitter Inc. said Tuesday that its monthly active users and revenue rose in the third quarter, and that the effect of Apple’s iOS privacy change on its ad business was “modest.”
Revenue rose to $1.28 billion from $936 million in the year-ago quarter in all markets, and Twitter
said average monetizable daily active users increased 13% year over year to 211 million, compared with analysts’ expectations of 211.9 million.
Ad revenue climbed 41% higher to $1.14 billion, with the company saying it was prepared for the Apple
iOS change that weighed on the earnings of competitors like Facebook Inc.
and Snap Inc.
during the quarter.
“It is still too early for Twitter to assess the long-term impact of Apple’s privacy-related iOS changes, but the Q3 revenue impact was lower than expected, and we have incorporated an ongoing modest impact into our Q4 guidance,” the company said in its letter to shareholders.
The microblogging company reported a third-quarter loss of $536.8 million, or 67 cents a share, compared with a profit of $28.7 million, or 4 cents a share, in the year-ago period, much of which it attributed to one-time $766 million charge related to a class-action settlement over allegations it misled investors about user growth. Adjusted for stock-based compensation and other costs, the company’s loss was 54 cents a share.
Analysts surveyed by FactSet had forecast earnings of 17 cents a share on revenue of $1.28 billion.
Twitter stock rose more than 3% after hours, after falling about 1% in the regular session to close at $61.43.
Twitter expects fourth-quarter revenue of between $1.5 billion and $1.6 billion, while analysts had forecast revenue of $1.59 billion.
Shares of Twitter have risen more than 13% year to date, and are up nearly 20% in the past 52 weeks. By comparison, the S&P 500 Index
is up 21.8% so far this year, and has increased almost 35% in the 12 monthsr.