The social networking site has been working to add new
features such as audio chat rooms to attract users, and also rolled out
improvements to its advertising capabilities to reach its goal of doubling
annual revenue by 2023.
Advertising revenue was $1.14 billion during the quarter
ended September 30, in line with consensus estimates.
The company said it saw a "modest" impact to
advertisement revenue due to privacy changes Apple rolled out, which prevent
advertisers from tracking users on their devices without their consent.
Investors had expected Twitter would be relatively shielded
from being hurt by the changes, because most of its advertisers do not rely on
highly targeted ads.
As the San Francisco-based company works to expand its
targeted advertising business, it is introducing more features like topics that
users can follow on Twitter. Those features provide data on people's interests
that can eventually be used to help deliver relevant ads, said Twitter Chief
Financial Officer Ned Segal, during a conference call with analysts.
"A lot of this is opportunity that's in front of
us," he said.
Twitter's tech peers Snap and Facebook said the Apple
changes hurt their ability to target and measure digital advertisements, citing
the updates as the reason why the companies fell short of revenue expectations.
Twitter said monetisable daily active users, its term for
users who are served advertisements, was 211 million during the third quarter,
missing analyst estimates of 212.6 million, according to IBES data from
Refinitiv.
While Twitter increased its number of users outside the
United States by 5 million from the previous quarter, its US base remained
flat.
Total revenue, which also includes money that Twitter earns
from data licensing, was $1.28 billion, also in line with Wall Street targets.
Twitter said its costs this year from hiring and investing
in a new data centre will flow into next year, resulting in a mid-20 percent
increase in total costs for 2022.
The company forecast fourth quarter revenue between $1.5
billion to $1.6 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 be able to recoup the
revenue loss next year from selling MoPub, estimated between $200 million to
$250 million, though it added the sale does not affect Twitter's goal of
doubling annual revenue by 2023. -Reuters
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