Twitter reported Tuesday that its quarterly revenue was up 37 percent, avoiding the brunt of Apple’s privacy changes in advertising that hampered its rivals and adding 3 percent to its shares. The social networking site has been working on adding new features like audio chat rooms to attract users and also rolling out improvements to its advertising features to meet its goal of doubling annual sales by 2023.
Ad revenue was $ 1.14 billion (approximately Rs.8,550 billion) for the quarter ended September 30, which is in line with consensus estimates.
The company said it saw a “modest” impact on ad revenue due to privacy changes introduced by Apple that prevent advertisers from tracking users on their devices without their consent.
Investors had expected Twitter to be relatively shielded from the changes as most of its advertisers don’t rely on very targeted ads.
As the San Francisco-based company works to grow its targeted advertising business, it is introducing more features like topics that users can follow on Twitter. These features provide data about people’s interests that can eventually be used to serve relevant ads, Twitter’s chief financial officer Ned Segal said during a conference call with analysts.
“Much of it is an opportunity that lies ahead,” he said.
Twitter’s tech peers Snap and Facebook said Apple’s changes affect their ability to target and measure digital advertisements.
Twitter said the Monetizable Daily Active Users, the term for those viewing advertisements, was 211 million in the third quarter, missing an analyst estimate of 212.6 million, according to IBES data from Refinitiv.
While Twitter increased the number of users outside the US by 5 million from the previous quarter, the US base remained unchanged.
Total revenue, which includes the money Twitter makes from data licensing, was $ 1.28 billion (approximately Rs.9,595 billion), also in line with Wall Street’s goals.
Twitter said its this year’s cost of hiring and investing a new data center will flow into the next year, resulting in a mid-20 percent increase in total costs for 2022.
The company predicts fourth quarter sales of between $ 1.5 billion (approximately Rs.11,245 billion) and $ 1.6 billion (approximately Rs. 12,000 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 offset the loss in revenue next year with the sale of MoPub, which ranges from $ 200 million to Twitter’s target of $ 250 million in annual revenue To double in 2023, affect.
© Thomson Reuters 2021