Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Twitter avoids revenue hit from Apple privacy changes

Stock MarketsOct 27, 2021 00:21
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Twitter app is seen on a smartphone in this illustration taken July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo GLOBAL BUSINESS WEEK AHEAD

By Sheila Dang

(Reuters) - Twitter Inc (NYSE:TWTR) on Tuesday reported its quarterly revenue grew 37% and avoided the brunt of Apple Inc (NASDAQ:AAPL) privacy changes on advertising that hobbled its rivals, sending its shares up 3%.

The social networking site has been working to add new features such as audio chat rooms to attract users, and also rolled out improvements to its advertising capabilities to reach its goal of doubling annual revenue by 2023.

Advertising revenue was $1.14 billion during the quarter ended Sept. 30, in line with consensus estimates.

The company said it saw a "modest" impact to ad revenue due to privacy changes Apple rolled out, which prevent advertisers from tracking users on their devices without their consent.

Investors had expected Twitter would be relatively shielded from being hurt by the changes, because most of its advertisers do not 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. Those features provide data on people's interests that can eventually be used to help deliver relevant ads, said Twitter Chief Financial Officer Ned Segal, during a conference call with analysts.

"A lot of this is opportunity that's in front of us," he said.

Twitter's tech peers Snap and Facebook (NASDAQ:FB) said the Apple changes hurt their ability to target and measure digital ads, citing the updates as the reason why the companies fell short of revenue expectations.

Twitter said monetizable daily active users, its term for users who are served ads, was 211 million during the third quarter, missing analyst estimates of 212.6 million, according to IBES data from Refinitiv.

While Twitter increased its number of users outside the United States by 5 million from the previous quarter, its U.S. base remained flat.

Total revenue, which also includes money that Twitter earns from data licensing, was $1.28 billion, also in line with Wall Street targets.

Twitter said its costs this year from hiring and investing in a new data center will flow into next year, resulting in a mid-20% increase in total costs for 2022.

The company forecast fourth quarter revenue between $1.5 billion to $1.6 billion.

Twitter previously announced it would 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 to be able to recoup the revenue loss next year from selling MoPub, estimated between $200 million to $250 million, though it added the sale does not affect Twitter's goal of doubling annual revenue by 2023.

Twitter avoids revenue hit from Apple privacy changes
 

Related Articles

Calix Up 12% After Craig-Hallum Upgrade
Calix Up 12% After Craig-Hallum Upgrade By Investing.com - Jan 28, 2022

By Sam Boughedda Investing.com — Shares of Calix Inc (NYSE:CALX), the cloud and software services provider, rose 12% Friday after analyst Christian Schwab at Craig-Hallum...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email