@Jack really struck gold from those Facebook (FB) shortages, if Twitter’s (TWTR) latest earnings report is anything to go by. The platform reported a 37% year-on-year (YoY) increase in revenues, reaching $1.3b.
It hasn’t been all smooth sailing for the company, though — back in September, the firm had to settle for $810m in a legal dispute around it putting out misleading user growth figures. The settlement means Twitter posted a $537m net loss this quarter, but it doesn’t seem to be a long-term issue as the company’s seen a 13% YoY jump in daily monetizable users. This works in its favor as more users means more ads (the platform’s advertising revenue rose by 41% in Q3 to reach $1.1b). Its share price took a 10% hit, though, because of concerns surrounding Apple’s (APPL) latest iOS update, which is said to collect more data on app users than usual for more targeted ads — a decision which isn’t a fan favorite.
why it matters
As Twitter strips off the excess with the sale of ancillary subsidiaries like MoPub, its future growth is underpinned by its community-centered features it has doubled down on (like Spaces and Tips).