Twitter (TWTR) Q3 2021 earnings release miss estimates due to litigation settlement
Twitter's Q3 2021 earnings report is out, and the company came in just under expectations.
Twitter is one of the many companies sharing its earnings report today, where it details its financial performance over the last several few months. It’s also where the company gives its outlook for the upcoming quarter for its shareholders. Twitter’s (TWTR) Q3 earnings report reveals that the company missed estimates, primarily due to a litigation settlement from earlier this year.
Twitter’s (TWTR) Q3 earnings report was shared to its investor’s relations website on October 26, 2021. Here, we see just how well the social media performed financially over the last 3 months. Twitter brought in a total revenue of $1.28 billion in Q3, which represents a 37% year-over-year growth. The majority of this income came from ads, which pulled in $1.14 billion.
“Our focus is paying off, and we are pleased with our performance in the third quarter, with revenue up 37% year-over-year, reflecting strength across all major products and geographies,” said Ned Segal, Twitter’s CFO. “We continued to drive increased value for our advertisers thanks to revenue product innovation, including progress on our brand and direct response offerings, strong sales execution, and a broad increase in advertiser demand. These factors contributed to 41% year-over-year growth in ad revenue in Q3.”
However, it isn’t all good news for the popular social media company. Twitter suffered a $743 million loss in Q3, putting it below expectations. This loss is the result of a $809.5 million settlement that the company made back in September. A loss that big was too large to overcome and had a huge impact on the Q3 earnings.
Twitter’s Q3 earnings report shows some year-over-year improvement, but the company ultimately came in under expectations. Interestingly enough, Twitter CEO Jack Dorsey has stated that the new privacy features added to iOS devices this year had a minimal impact on the company’s business.
Donovan Erskine posted a new article, Twitter (TWTR) Q3 2021 earnings release miss estimates due to litigation settlement