Twitter gained 5 million users in the third quarter
Twitter gained 5 million users in the third quarter

Twitter reported user growth in the third quarter of 2021 and good revenue growth, albeit well below Wall Street earnings expectations.

The company said it invested an average of 211 million daily active users for the quarter, up 13% year over year and net income of 5 million over the same period.

In the third quarter, the average number of daily active users in the US was 37 million.

Revenue growth outpaced user growth with total revenue of $1.28 billion in the third quarter, an increase of 37% year over year.

In the United States, the number of net daily active users increased by 1 million users annually, and revenue increased by 45% to $742 million.

The company said in a letter to shareholders that Apple's privacy change for iOS 14.5, which allows users to follow ads, had a greater impact on third-quarter revenue than it did in the second quarter. But he is still modest.

The company said it's too early to assess the long-term privacy impact of Apple's changes to iOS. However, the impact on sales in the third quarter was less than expected. Our expectations for the fourth quarter included a moderate and sustained impact.

Twitter sales grow 37%

The company's net loss was $537 million. The loss in that period included net one-time litigation costs of $766 million in the third quarter.

The fee relates to the company's agreement to settle a class action claim that allegedly provided investors with misleading information about user interactions.

The company's stock price rose as investors were encouraged by the positive guidance for the fourth quarter and the impact of iOS 14.5 wasn't severe.

For the fourth quarter, Twitter expects sales of between 1.5 and 1.6 billion US dollars. The operating result is expected to be between $130 million and $180 million.

“We are working to improve personalization, enhance dialogue, provide relevant information, and find new ways to help people get paid on the platform,” Jack Dorsey said in a statement.

Twitter ad revenue grew more than 41% to $1.14 billion. Compared to the previous year, the total number of ad interactions increased by 6%.

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