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Twitter’s third-quarter revenue is 1.28 billion USD, loss of 537 million USD
Today, Twitter said that Apple’s latest privacy adjustments will have a “not significant” impact on its advertising revenue. The new privacy policy allows users to choose whether or not to share data.
This has already affected Facebook and Snap, which rely heavily on advertising, leaving both companies’ revenue below expectations.
Twitter said that Apple’s privacy policy adjustments will have a “small” impact on the company’s revenue. “It is too early to evaluate the long-term impact of Apple’s iOS-related privacy adjustments, but its impact on Q3 revenue is lower than expected,” Twitter said.
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Moreover, investors had previously expected Twitter to be relatively less affected by Apple’s privacy adjustments because most of the company’s advertisers do not rely on targeted advertisements that are more targeted. Twitter’s third-quarter revenue and user growth were in line with expectations, driving the stock price to rise 3% after the market.
Twitter Inc. (NYSE: TWTR) today released its fiscal year 2021 third-quarter performance report ending September 30. According to the financial report, Twitter’s third-quarter revenue was US$1.28 billion, an increase of 37% from US$936 million in the same period last year; net loss was US$537 million, and net profit was 2866 in the same period last year. Ten thousand U.S. dollars, a year-on-year turnaround.
Twitter stock price changes
Twitter’s opening price on the NYSE on Tuesday was $62.66. As of the close on Tuesday, Twitter’s stock price fell by 0.68 US dollars to close at 61.43 US dollars, a decrease of 1.09%. As of 16:15 on Tuesday, US Eastern Time (4:15 on Wednesday, Beijing time), Twitter’s stock price rose by US$0.27 in pre-market trading, temporarily reporting US$61.70, an increase of US$0.44. In the past 52 weeks, Twitter’s stock price was as high as $80.75 and the lowest was $38.93.
Highlights of Twitter’s third-quarter performance
Revenue: Twitter’s third-quarter revenue was US$1.28 billion, an increase of 37% from US$936 million in the same period last year.
Among them, advertising revenue was US$1.141 billion, compared with US$808 million in the same period last year, an increase of 41% year-on-year; data authorization and other revenues were US$143 million, compared with US$128 million in the same period last year, an increase of 12% year-on-year.
By region, the US regional revenue was US$742 million, an increase of 45% over the same period last year; international revenue was US$542 million, and the same period last year was US$424 million, an increase of 28% year-on-year. International advertising revenue was US$493 million, compared to US$381 million in the same period last year, an increase of 30% year-on-year.
Net profit and net profit margin: Calculated in accordance with the US General Accounting Principles (GAAP), the net loss was US$537 million, compared with a net profit of US$28.66 million in the same period last year, a year-on-year turnaround. The net profit margin is -42%, and the diluted loss per share is 0.67 US dollars. In comparison, the net profit margin for the same period last year was 3%, and the diluted earnings per share were $0.04.
Not in accordance with the United States General Accounting Principles (non-GAAP) calculation, the net loss was 434 million U.S. dollars, compared with the net profit of 154 million U.S. dollars in the same period last year. Diluted loss per share was US$0.54, and diluted earnings per share for the same period last year was US$0.19.
Operating profit (or operating loss): Twitter’s operating loss in the third quarter was US$743 million, with an operating profit margin of -58%, which included a one-time fee of US$766 million related to litigation and continued investment. The adjusted operating profit (excluding one-time expenses related to litigation) was 23 million U.S. dollars, and the operating profit margin was 2%. Operating profit for the same period last year was US$56 million, the operating profit margin was 6%
Equity award expenses: US$164 million, a year-on-year increase of 42%.
Total costs and expenditures: US$2.026 billion, compared with US$880 million in the same period last year, an increase of 130% year-on-year.
Revenue cost: US$484 million, compared with US$361 million in the same period last year, a year-on-year increase of 34%.
R&D expenditure: US$324 million, compared with US$209 million in the same period last year, an increase of 55% year-on-year.
Sales and marketing expenses: 301 million U.S. dollars, compared with 215 million U.S. dollars in the same period last year, an increase of 40%.
General affairs and administrative expenses: US$141 million, compared with US$94.58 million in the same period last year, an increase of 49% year-on-year.
Cash flow: The net cash provided by Twitter’s operating activities in the quarter was US$389 million, compared with US$215 million in the same period last year. Capital expenditures totaled 409 million U.S. dollars, compared with 289 million U.S. dollars in the same period last year.
Operational data: The average number of daily active users (mDAU) in the third quarter was 211 million, compared with 187 million in the same period last year and 206 million in the previous quarter. The average daily active users in the US was 37 million, 36 million in the same period last year, and 37 million in the previous quarter; the average daily active users in the international region was 174 million, 152 million in the same period last year, and 169 million in the previous quarter.
Performance Outlook
The fourth quarter of the fiscal year 2021: Twitter predicts that in the fourth quarter of the financial year 2021, total revenue will reach US$1.5 billion to US$1.6 billion; based on GAAP, operating profit will be between US$1.3 billion and US$1.8 billion. Capital expenditures are expected to be between US$85 million and US$135 million. Stock-based compensation expenses are estimated to be approximately US$175 million.
Twitter’s fiscal 2021 fourth-quarter performance outlook data is based on foreign exchange rates as of October 2021.
Executive Comments
Twitter CEO Jack Dorsey (Jack Dorsey) said: “I am proud of Twitter’s performance in the third quarter. We are improving Twitter, such as personalization, promotion of dialogue, the transmission of information, etc. Through continuous product improvement, And driven by current global hot events, Twitter’s average daily active users in the third quarter reached 211 million, a year-on-year increase of 13% and a month-on-month increase of 11%.”
Ned Segal, Twitter’s Chief Financial Officer, said: “Our focus is paying off. Twitter’s revenue in the third quarter increased by 37% year on year. Products performed well in many regions. The value of our advertisers continued to grow, thanks to revenue product innovation, including brand growth, strong sales execution, and extensive growth in advertiser demand. These factors have contributed to the third quarter The 41% year-on-year increase in advertising revenue contributed.”