Twitter Inc. Earnings Report (Q3 2021)

Twitter’s earnings report is out – with revenue expectations met and an impact assessment on Apple’s privacy changes.
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Third quarterly earnings for Twitter Inc. are out – and while revenue figures are lower than expected, many investors still have optimism over the company’s future.

Revenue for Q3 2021 came in at $1.284 billion (vs $1.285 billion expected by analysts), growing 37%. $742 million of this figure was revenue generated by US operations (+45%), while $542 million comes from international markets (+28%). Japan remains Twitter’s second largest revenue market, accounting for $159 million or 12% of the total revenue figure. $1.14 billion of the total revenue generated was via advertising.

Expenses increased to $2.03 billion, up 130% from last quarter due to a $766 million payout to settle lawsuits and other litigation costs. Furthermore, Twitter said that costs related to sales expenses and infrastructure had also increased this figure. More notably, costs attributed to research and development rose 55% to $324 million, and administrative costs rose 60% to $151 million due to higher employment related costs and other fees involving professional services.

Average number of monetizable daily active users (mDAU) was 211 million (vs 211.9 million expected by analysts), up 13%, which Twitter says is driven by product improvements and current events going off around the world.

Diluted earnings per share (EPS) came in at $0.67.

Twitter’s outlook for Q4 2021 was that total revenue is expected to be between $1.5 billion and $1.6 billion. Twitter expects to release its Q4 2021 and total year results after market close on February 10, 2022.

Twitter also said that the impact of Apple’s iOS 14 privacy changes on the company has been minimal. They also noted their sale of MoPub to AppLovin for $1.05 billion, saying they do not expect to recouperate their revenue loss from the company and that the deal will close early next year.

Shares of Twitter Inc. are currently trading $1.75 higher (2.85%) at $63.18 before market open on Wednesday.

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