Twitter Inc was apparently able to dodge the effects of Apple Inc's privacy rules on advertising, which hampered its competitors, as it reported a 37 per cent hike in its quarterly revenue. That sent its stocks up by 3 per cent.
In order to meet its aim of tripling annual revenue by 2023, the social networking site has been working to offer new services such as audio chat rooms, as well as improving its advertising capabilities.
The company reported advertising revenue for the quarter ended Sept. 30 at $1.14 billion, which was in line with expectations.
Apple's privacy measures, which ban advertisers from following users on their devices without their consent, had a "minimal" impact on ad income, according to the company.
Since most of Twitter's advertisers do not depend on highly targeted ads, therefore its investors had expected the company to be mostly unaffected by the adjustments made by Apple.
The San Francisco-based company is launching new capabilities such as Twitter topics that users can follow as part of its effort to build its targeted advertising business. During a conference call with investors, Twitter Chief Financial Officer Ned Segal explained that these features generate data on people's interests that can someday be utilized to assist provide targeted adverts.
"A lot of this is opportunity that's in front of us," he said.
The privacy setting changes made by Apple had harmed their ability to target and measure digital ads, according to Snap and Facebook, Twitter's tech rivals, who had pointed to the changes for a fall in their revenues.
During the third quarter, Twitter's monetizable daily active users, or the measure of users who are served advertising, was 211 million which was lower than analyst projections of 212.6 million, According to IBES data from Refinitiv. The number of Twitter users during the quarter remained the same even though the company managed to increase the number of users outside the US by 5 million compared to the preceding quarter.
The company also reported total revenue at $1.28 billion, which included money from data licensing, which was also in line with Wall Street expectations.
The costs incurred this year by Twitter for hiring and building a new data centre will be carried over to the following year, the company claimed, which will cause an increase of between mid-to-high 20 per cent hike in its total expenses in 2022.
The company expects revenue of $1.5 billion to $1.6 billion for the fourth quarter.
The sale of Twitter's advertising technology company, MoPub, which was previously announced, is anticipated to get completed by the first quarter of 2022.
The company also does not expect to be able to make up revenue that would be lost next year from the sale of MoPub, which is expected to generate cash flow of between $200 million and $250 million, even though Twitter's goal of doubling annual revenue by 2023 will not be affected by this, the company said.
(Source:www.usnews.com)
In order to meet its aim of tripling annual revenue by 2023, the social networking site has been working to offer new services such as audio chat rooms, as well as improving its advertising capabilities.
The company reported advertising revenue for the quarter ended Sept. 30 at $1.14 billion, which was in line with expectations.
Apple's privacy measures, which ban advertisers from following users on their devices without their consent, had a "minimal" impact on ad income, according to the company.
Since most of Twitter's advertisers do not depend on highly targeted ads, therefore its investors had expected the company to be mostly unaffected by the adjustments made by Apple.
The San Francisco-based company is launching new capabilities such as Twitter topics that users can follow as part of its effort to build its targeted advertising business. During a conference call with investors, Twitter Chief Financial Officer Ned Segal explained that these features generate data on people's interests that can someday be utilized to assist provide targeted adverts.
"A lot of this is opportunity that's in front of us," he said.
The privacy setting changes made by Apple had harmed their ability to target and measure digital ads, according to Snap and Facebook, Twitter's tech rivals, who had pointed to the changes for a fall in their revenues.
During the third quarter, Twitter's monetizable daily active users, or the measure of users who are served advertising, was 211 million which was lower than analyst projections of 212.6 million, According to IBES data from Refinitiv. The number of Twitter users during the quarter remained the same even though the company managed to increase the number of users outside the US by 5 million compared to the preceding quarter.
The company also reported total revenue at $1.28 billion, which included money from data licensing, which was also in line with Wall Street expectations.
The costs incurred this year by Twitter for hiring and building a new data centre will be carried over to the following year, the company claimed, which will cause an increase of between mid-to-high 20 per cent hike in its total expenses in 2022.
The company expects revenue of $1.5 billion to $1.6 billion for the fourth quarter.
The sale of Twitter's advertising technology company, MoPub, which was previously announced, is anticipated to get completed by the first quarter of 2022.
The company also does not expect to be able to make up revenue that would be lost next year from the sale of MoPub, which is expected to generate cash flow of between $200 million and $250 million, even though Twitter's goal of doubling annual revenue by 2023 will not be affected by this, the company said.
(Source:www.usnews.com)
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