Twitter Inc. on Tuesday did not meet the expectations of Wall Street on user growth as it faced competition from rival apps like TikTok, but reported quarterly revenue in line with estimates.
The social network has been working to add new features, such as audio chat rooms, to attract users, and it has also rolled out enhancements to its advertising capabilities to reach its goal of doubling annual revenue by 2023.
Advertising revenue was $ 1.14 billion for the quarter ending September 30, in line with consensus estimates.
Twitter said monetizable daily active users, its term for users receiving ads, was 211 million during the third quarter, down from analyst estimates of 212.6 million, according to IBES data from Refinitiv.
Twitter increased its number of users outside USA at 5 million, compared to the previous quarter, but its US base remained stable.
The company said it saw a “modest” impact on advertising revenue from privacy changes that Apple Inc launched on devices iOS, which prevent advertisers from tracking users on their devices without their consent.
Investors expected that Twitter would be relatively protected from change, because most of its advertisers do not depend on highly targeted advertising.
Snap and Facebook, which also reported third-quarter revenue, did not meet estimates because changes in the privacy of Apple impacted their ability to target and measure digital ads.
Total revenue, which also includes the money Twitter earns from data licenses, was $ 1.28 billion, also in line with targets for Wall Street.
Twitter It said its costs this year for hiring and investing in a new data center will carry over to next year, which will increase total costs close to 20% in 2022.
The company expects fourth-quarter revenue between $ 1.5 billion and $ 1.6 billion.