Twitter shares jump after the social media giant reported solid 3rd-quarter earnings – with user growth and revenue meeting the expectations of analysts. It showed that the iPhone privacy changes of Apple had less of an impact on its business than expected. Moreover, the company announced 3rd-quarter revenue of around $1.28 billion, a surge of thirty-seven percent from one year ago. Likewise, daily active users increase by five million to a total of two hundred and eleven million.
#Twitter‘s ( $TWTR ) stock price was down slightly on Tuesday after the company reported its third-quarter earnings.
• Earnings: 54-cent loss per share, adjusted.
• Revenue: $1.284 billion vs. $1.285 billion as expected by analysts polled by Refinitiv.
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Twitter reported a loss of fifty-four cents per share, which was higher than expected, mostly because of a one-time settlement paid out last month to resolve a shareholder suit. Moreover, Twitter shares’, which previously lost more than one percent during trading on Tuesday, mount approximately four percent after the earnings release. Several investors are intensely watching to what level the recent iPhone privacy changes of Apple would impact the earnings of Twitter, after mixed results from Facebook on Snap and Facebook last week.
Instead of the latest policy of Apple is disrupting the advertisement business of both these companies, Twitter said that the impact of the iOS privacy changes was minimal, with the quarterly ad revenue of the platform increasing over forty-one percent from one year ago to $1.14 billion. Therefore, moving towards the 4th quarter, Twitter still only expects a minimal impact on overall revenues from the recent iOS changes of Apple.
App Tracking Transparency
Privacy changes for the iPhone iOS 14.5 update from Apple launched during the 3rd quarter and announced the latest App Tracking Transparency feature, which lessens the profitability and effectiveness of targeted advertising. Snap app, which is almost completely on smartphones, admitted in its earnings report that privacy changes of Apple during the 3rd quarter impacted the sales of advertising more than expected: investors panicked, due to which Snap share jumped more than twenty-five percent instantly following earnings.
Facebook, which reported its earnings on 25th October, also missed revenue approximates as Chairman Mark Zuckerberg warned of continued headwinds from fourteen changes of iOS, with shares tumbling approximately four percent yesterday. According to the estimates of Forbes, Twitter CEO and co-founder Jack Dorsey have a net worth of $14.5 billion.