Twitter reported Tuesday that its quarterly revenue jumped 37 percent and avoided the brunt of Apple’s privacy changes on advertising, which has sent its rivals up 3 percent. 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.
Ad revenue for the quarter ended September 30 was $1.14 billion (about Rs 8,550 crore), in line with consensus estimates.
The company said the privacy change had a “slight” impact on advertising revenue. Apple has been rolled out, which prevents advertisers from tracking users on their devices without their consent.
investors expected Twitter Relatively safe from being hurt by the changes, as most of its advertisers don’t rely on highly targeted ads.
As the San Francisco-based company works to expand its targeted advertising business, it is introducing more features like topics that users can follow on Twitter. Twitter Chief Financial Officer Ned Segal said during a conference call with analysts that those features provide data on people’s interests that could eventually be used to help deliver relevant ads.
“A lot of it is the opportunity that lies ahead of us,” he said.
According to Refinitiv’s IBES data, Twitter said monetizable daily active users, its tenure for users during the third quarter, stood at 211 million, which was not analysts’ estimate 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 Twitter’s earnings from data licensing, stood at $1.28 billion (about Rs 9,595 crore), in line with Wall Street targets.
Twitter said hiring and investing in a new data center this year would see its costs flow next year, resulting in a 20 percent increase in total costs for 2022.
The company has estimated fourth quarter revenues between $1.5 billion (approximately Rs 11,245 crore) to $1.6 billion (approximately Rs 12,000 crore).
Twitter previously announced It will 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 recover revenue losses from selling MoPub next year, which is estimated to be between $200 million (approximately Rs 1,500 crore) and $250 million (approximately Rs 1,875 crore), Although he said sales would not affect Twitter’s goal of doubling annual revenue by 2023.
© Thomson Reuters 2021