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Twitter Revenue Drops; Firm Says Apple Impression Largely Averted

Twitter Revenue Drops; Firm Says Apple Impression Largely Averted

Twitter Inc.

TWTR 5.14%

on Thursday posted lower-than-expected revenue as bills climbed however mentioned it largely dodged the influence of privateness modifications which can be hurting

Fb

FB 5.37%

guardian

Meta Platforms Inc.

Twitter additionally introduced a $4 billion inventory buyback, its first for the reason that firm introduced a $2 billion program in March 2020.

The social-media firm mentioned its every day consumer base rose 2.84% from its earlier quarter to 217 million. Analysts polled by FactSet had anticipated the consumer depend to rise to 218 million. Twitter posted internet revenue of $182 million, down from $222 million a 12 months earlier. Analysts had been anticipating $290 million, in response to FactSet.

Twitter’s income rose to $1.57 billion within the fourth quarter, up 22% from $1.29 billion a 12 months earlier. That was largely in keeping with the analysts’ estimate of $1.58 billion, in response to FactSet.

Bills within the quarter climbed to $1.4 billion, a rise of 35% over the earlier 12 months. Complete prices and bills grew on account of a rise in head depend, greater sales-related bills, infrastructure prices and elevated advertising bills, the corporate mentioned.

Twitter inventory was up 7.3% at $40.54 in premarket buying and selling Thursday following the outcomes.

The corporate’s outcomes come per week after Fb guardian Meta reported that ad-tracking modifications launched by

Apple Inc.

AAPL 0.83%

final 12 months would price the corporate some $10 billion this 12 months. Meta’s outlook triggered shares to tumble, shaving greater than $300 billion from the corporate’s market cap over the previous week, and created important volatility amongst others within the business.

Snap Inc.

shares initially fell sharply too, then soared in a single buying and selling session after the corporate mentioned the consequences of Apple’s modifications had been restricted.

Apple started requiring apps to request consumer monitoring permissions in April 2021. WSJ’s Shelby Holliday explored in November how these prices might be handed on to shoppers. Illustration: Rafael Garcia

Twitter mentioned the influence of Apple’s modifications on the corporate’s income remained modest for it as properly.

Some 85% of Twitter’s advert income comes from model advertisements, that are much less affected by Apple’s modifications than direct-response advertisements, Twitter Chief Monetary Officer

Ned Segal

mentioned in an interview. These modifications current Twitter with a chance moderately than a danger, Mr. Segal mentioned. “There’s a lot room in entrance of us,” he mentioned.

The corporate mentioned Thursday that it’ll change the identify of its Information Licensing and Different Income enterprise section to Subscription and Different Income beginning with the primary quarter of 2022. This transfer will mirror the $1.05 billion sale of the mobile-ad agency MoPub to

AppLovin Corp.

, Twitter mentioned in a letter to shareholders. That sale was introduced in October, and it closed in early January, Mr. Segal mentioned.

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That section will embody income from the corporate’s Blue month-to-month subscription service, which launched final 12 months. Twitter Blue provides subscribers entry to unique and experimental options, together with the power to make use of nonfungible tokens as their profile footage.

Blue is out there to customers within the U.S., Canada, New Zealand and Australia. Whereas the corporate hasn’t mentioned what number of subscribers the service has, Mr. Segal mentioned the corporate is “actually enthusiastic about what we’re seeing up to now.”

Twitter has but to see an actual influence from inflation, however inflation might have an effect on the corporate in just a few alternative ways, Mr. Segal mentioned. For instance, the annual will increase associated to price of dwelling for workers are going to be greater this 12 months than they’ve been previously, he mentioned. Moreover, inflation might have an effect on how manufacturers promote and which items and companies they select to promote, Mr. Segal mentioned.

“The outcomes from This fall converse for themselves that we’re not but seeing actual influence from inflation in how our promoting and content material companions present up on Twitter,” Mr. Segal mentioned.

Write to Salvador Rodriguez at salvador.rodriguez@wsj.com

Copyright ©2022 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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