Third-quarter revenue for Twitter rises 14 percent
Twitter, the microblogging and social networking site, continued to see a rise in its total traffic in the third quarter. This rise took place due to the trifecta of returning sports, the presidential campaign, and the COVID-19 pandemic. But it did not report a nearly enough growth.
The company witnessed a total profit of USD 28.66 million or USD 0.04 per share. This compares with USD 36.52 million, or USD 0.05 per share, in its third quarter of the last year. This was a decline from the same time period last year.
The company’s net cash provided by operating activities in the quarter was USD 215 million compared to USD 336 million in the same period last year.
Twitter’s user figures, showed minimal growth and sent shares lower in after-market trading. Twitter’s mDAUs, the internal audience metric that measures monetizable daily active users, hit 187 million in the third quarter. That’s a thin improvement from the 186 million that was reported by the company in the second quarter of this year, despite the fact that it did represent a 29 percent rise from the 145 million in the same period last year. Analysts from FactSet had expected 195 million mDAUs.
Twitter’s ad revenue also grew 15 percent to USD 808 million. Total ad engagement rose 27 percent over the same period in 2019.
Jack Dorsey, Twitter’s CEO said, “We have increased and grown our daily audience by 42 million in the last year. I’m pleased mDAU (monetizable daily active Twitter users) grew 29 percent year-over-year to 187 million in the third quarter.”
Twitter CFO Ned Segal said, “The return of live events as well as increased and previously delayed product launches helped boost ad revenue. We also made progress on our brand and direct response products, with updated ad formats, improved measurement, and better prediction. We remain confident that our larger audience, coupled with ongoing revenue product improvements, new events and product launches, and the positive advertiser response to the choices we’ve made as we have grown the service, can drive great outcomes over time.”
The U.S., Twitter’s greatest market, accounted for USD 513 million in revenue, a 10 percent magnify YoY.
However, Twitter warned that the vacation season and US election can even impact advertiser conduct and behavior.