Twitter posted much stronger results than expected in the third quarter thanks to growing demand from advertisers, but profits slipped and daily users fell below analyst expectations.
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This caused stocks to dip 15% into after-hours trading. The stock had closed up $ 3.92, or 8.1%, at $ 52.43.
|TWTR||TWITTER INC.||52,43||+3,90||+ 8,04%|
The San Francisco-based company earned $ 28.66 million, or 4 cents per share, between July and September. This represents a decrease of 22% from the previous year, due to higher spending partly related to COVID-19. Excluding non-recurring items, profit was 19 cents per share.
Revenue increased 14% to $ 936.2 million, from $ 823.7 million.
SEN. JOHNSON PRESS DORSEY, CEO OF TWITTER, FOR A HUNTER BIDEN STORY IS EVIDENCE HUNTER DISINFORMATION CAMPAIGN
Twitter had 187 million daily users, on average, in the third quarter, but below analysts’ expectations of 195.6 million. The company no longer discloses monthly user figures.
“We have grown our daily audience by 42 million over the past year as people from around the world come to Twitter to find out what topics and events matter most to them. I’m happy that mDAU has grown 29% year over year to reach 187 million. , driven by a global conversation around news and product improvements, ”said Jack Dorsey, CEO of Twitter.
Analysts had expected a loss of 10 cents per share, adjusted earnings of 6 cents per share and revenue of $ 777.3 million, according to a survey by FactSet.
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The company predicted uncertainty in the future, due in part to the upcoming US election, and said it was “difficult to predict how advertiser behavior might change.”
The Associated Press contributed to this report.