Twitter mentioned on Tuesday that its income for the third quarter rose 37 p.c from a 12 months in the past to $1.28 billion, including that it had largely sidestepped the consequences from the privateness modifications that Apple enacted, which have harm cell promoting.
However the social media firm swung to a lack of $537 million within the quarter from a revenue of $29 million a 12 months earlier, after it paid $809.5 million to settle a 2016 shareholder lawsuit that accused it of deceptive buyers about its consumer metrics.
In a letter to shareholders, Twitter mentioned that the fallout from Apple’s modifications on its enterprise have been much less extreme than for different firms. This 12 months, Apple launched App Monitoring Transparency, a pop-up window in iPhone apps that offers folks the selection to not be tracked throughout apps and web sites. The transfer has disrupted firms that relied on the monitoring to gather details about customers so they may higher goal advertisements.
Final week, Snap mentioned in an earnings name that Apple’s modifications had induced its income to develop extra slowly than anticipated. Fb additionally mentioned this week that it was retooling a few of its promoting methods due to the modifications.
However Twitter mentioned the consequences of Apple’s modifications have been extra benign for it as a result of its advertisers usually use it for model consciousness campaigns, which rely much less on monitoring, moderately than direct response campaigns, which extra intently observe customers.
“It’s nonetheless too early for Twitter to evaluate the long-term influence of Apple’s privacy-related iOS modifications,” however the income influence for the third quarter was decrease than anticipated, Twitter mentioned in its letter to shareholders.
Twitter’s customers observe subjects and communities on the service, which can provide advertisers a glimpse into their pursuits, Jack Dorsey, the corporate’s chief govt, mentioned on an earnings name.
“It provides us a floor space for advertisers who might need to be proven round a selected subject,” Mr. Dorsey mentioned.
Twitter mentioned its variety of day by day lively customers who noticed advertisements grew 13 p.c within the third quarter to 211 million. Most of that progress got here from exterior the US, the corporate added. Its inventory worth rose about 3 p.c in after-hours buying and selling.
Twitter mentioned that its sale of MoPub, a platform for promoting cell promoting, to the cell promoting firm AppLovin would conclude within the first quarter of 2022 and that it anticipated to lose some promoting income in consequence. However the firm mentioned that it was nonetheless on observe to satisfy its objective of incomes $7.5 billion or extra of annual income in 2023.
“We continued to drive elevated worth for our advertisers due to income product innovation, together with progress on our model and direct response choices, sturdy gross sales execution, and a broad enhance in advertiser demand,” Ned Segal, Twitter’s chief monetary officer, mentioned in an announcement.