Twitter mentioned on Tuesday that its income for the third quarter rose 37 % 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 has enacted, which have damage cellular 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 traders about its consumer metrics.
In a letter to shareholders, Twitter mentioned that the fallout of Apple’s modifications on its enterprise had been much less extreme than for different firms. This 12 months, Apple launched App Tracking Transparency, a pop-up window in iPhone apps that offers individuals 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 adverts.
Final week, Snap mentioned in an earnings name that Apple’s changes had precipitated its income to develop extra slowly than anticipated. Facebook 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 had been extra benign for it as a result of its advertisers typically use it for model consciousness campaigns, which rely much less on monitoring, quite than direct response campaigns that extra intently monitor customers.
“It’s nonetheless too early for Twitter to evaluate the long-term impression of Apple’s privacy-related iOS modifications,” however the income impression for the third quarter was decrease than anticipated, Twitter mentioned in its letter to shareholders.
Twitter mentioned its day by day lively customers who noticed adverts grew 13 % within the third quarter to 211 million. Most of that progress got here from exterior the US, the corporate added.
Twitter said that its sale of MoPub, a platform for promoting cellular promoting, to cellular 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 added that it was nonetheless on monitor to fulfill its aim 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 a press release.