Twitter closes quarter with a loss after a lawsuit that cost US$ 800 million – Business – Tecnoblog

O Twitter released this Tuesday (26) the financial results for the third quarter of 2021 and recorded a prejudice due a payment of $800 million to resolve a 2016 court case. Still, the social network presented a significant increase in your revenue in the same period, highlighting the milder than expected impacts of Apple’s new privacy policies.

Twitter App (Image: Souvik Banerjee/ Unplash)

Twitter revenue increases 37% compared to 2020

The tech giant unveiled a 37% increase in your revenue this third quarter compared to the same period last year. So, Twitter released the inflow of US$ 1.28 billion. According to the social network, the result was very positive, given the negative impacts that Apple’s new privacy policy had on the ads.

Twitter said the effects of the iOS changes affected the platform less than other networks. The reason for this would be because your advertisers often use the app for brand awareness campaigns, which rely less on tracking, rather than direct response campaigns, which require greater access to user data.

“It’s still too early for Twitter to assess the long-term impact of iOS changes related to Apple’s privacy,” the company said in a letter to shareholders. Still, the social network highlighted that the impact of this on revenue in the third quarter was less than expected.

Twitter loses $809 million in lawsuit

How to enable tips on Twitter [Tip Jar] / Photo by Alexander Shatov on Unsplash
Ícone do Twitter (Imagem: Photo by Alexander Shatov on Unsplash)

However, the highlight of the quarterly result released today is the loss recorded. Twitter went from a profit of $29 million in the same period last year to losses of $537 million. The main reason for this was the multi-million dollar expenses to close a 2016 court case.

The platform had to pay $809 million in a deal for misleading investors about their user metrics at the time. It is worth noting that, if Twitter had not had this expense, the results could indicate a profit of up to US$ 272 million in the last quarter.

Twitter user base grows 13%

In addition to the increase in revenue and loss, Twitter also revealed in its results a 13% increase in daily active users of the platform, totaling 211 million of people who viewed ads compared to the same quarter of 2020. Thus, this number has already grown 85% over the past four years. Interestingly, most of this growth has come from outside the United States, indicating that social networking is increasingly present around the world.

Ned Segal, Twitter’s chief financial officer, said in a statement:

“We continue to generate greater value for our advertisers thanks to revenue product innovation, including progress in our brand and direct response offerings, strong sales execution and a broad increase in advertiser demand.”

The company added that it is expected to complete the sale of the MoPub advertising platform in the first quarter of 2022, which should cause a drop in ad revenue on the platform in the near term. However, the social network claims that the transaction is another step towards achieving your goal of generating US$ 7.5 billion or more of revenue throughout 2023.

With information: The New York Times

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