The company added just one million new daily users in the third quarter, missing analyst estimates by eight million
Twitter Inc said it added just one million new daily users in the third quarter, 8 million fewer than analysts estimated, despite the return of live sports and a US election campaign meant to drive people to the platform. stock fell around 10% in extended trading
Advertisers, however, have returned to the San Francisco-based social media company, generating quarterly sales well above analyst estimates, a sign that digital advertising activity is back after the pandemic outbreak global
Sales rose 14% to $ 936 million during the period ended Sept. 30, the San Francisco-based social media company said in a statement on Thursday. It was the biggest jump since second quarter 2019 Analysts forecast a 5% drop to $ 780 million, according to data compiled by Bloomberg In a letter to shareholders, Twitter cited the return of live events, such as professional sports, and product improvements as main revenue drivers
Twitter is one of three internet companies under intense pressure from US officials over their handling of political content Twitter CEO Jack Dorsey testified alongside executives of Facebook Inc and Google during a panel of the Senate Wednesday In Thursday’s results, the company did not give a forecast for the holiday quarter, but suggested that the uncertainty around the election could be a business factor
« It’s hard to predict how advertiser behavior might change, » the company wrote in its letter to shareholders « In the second quarter, many brands slowed or halted spending in response to US civil unrest, only to increase spending relatively quickly thereafter in an effort to catch up »
There were concerns that Twitter activity could be affected by a broad advertising boycott in July, when a number of top brand marketers pulled spending from social media companies due to their frustration facing their content policies
Unlike Facebook, Twitter has long relied on live events and big brand advertisers for business, but said in April that it also needs to improve its direct response advertising product, which is typically more useful for business users. Ecommerce Advertisers Looking To Drive Immediate Sales At the time, Twitter executives called better execution of these types of ads « top priority »
But in the letter to shareholders, Twitter said that a new version of these types of announcements is now delayed until 2021 so the company « can accommodate new industry standard mobile privacy requirements.Ned Segal, CFO, confirmed that the delay is in part due to expected updates related to Apple Inc iOS 14 software update Some changes to Apple software will affect how online advertisers can track Internet users on the web, but those changes were postponed until early next year Twitter is waiting to see how they’re implemented, Segal said
Twitter reported 187 million daily users at the end of the quarter, a 29% increase year-over-year, but a paltry gain from the previous period Twitter added 20 million new second quarter users
Twitter said in July it was exploring other lines of business, including subscriptions and « payment wall management, » but these efforts were not highlighted in the letter to the company’s shareholders
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World News – CA – Twitter misses 8 million new daily users in Q3
SOURCE: https://www.w24news.com
