Twitter Says US Presidential Election Could Hurt Ad Sales

Twitter Says US Presidential Election Could Hurt Ad Sales

Twitter on Thursday added fewer users than Wall Street expected and said an increase in spending would accelerate in the fourth quarter, sending its shares down 16 percent.

The San Francisco-based social media company said it expected expenses to increase about 20 percent in the fourth quarter compared to the previous year due to an increase in investments.

The company also cautioned that it was difficult to predict how advertisers would react as the US presidential election approaches on November 3.

Actions of Twitter It fell to $ 44 (roughly Rs. 3,200) in the aftermarket.

Twitter said that many companies halted ad spending during the second quarter due to widespread protests following the death of George Floyd in May and said there could be a similar dynamic with the US elections.

Twitter said it had 187 million monetizable daily active users (mDAU) during the third quarter, falling short of analyst consensus expectations of 195.2 million users, according to IBES data from Refinitiv. The figure stood at 186 million in the previous quarter.

Still, total revenue grew 14 percent year-over-year to $ 936 million (roughly Rs. 7 billion rupees) during the quarter ended September 30, beating analyst estimates of $ 777.15 million (roughly Rs. Rs. 5,800 crore).

The growth was helped by updated ad formats, better ad metering and the return of events that had been halted due to the pandemic, Twitter CFO Ned Segal said during an earnings call with analysts.

The company said outside of the election period, it expected revenue trends to continue or even improve in the current quarter.

Advertising revenue in the third quarter grew 15 percent to $ 808 million (approximately Rs. 6 billion rupees) from the same period a year ago, topping estimates of $ 645.95 million (approximately Rs. 4.8 billion rupees) .

The company said it would delay the launch of a new ad product until 2021 as it worked to integrate new mobile phone data privacy requirements.

Costs and expenses increased 13 percent over the same period last year to $ 880 million (roughly Rs. 6.6 billion rupees), as the company said it spent more on infrastructure-related expenses.

Net income in the third quarter was $ 28.66 million (approximately Rs 213 million), or 4 cents (approximately Rs 3) per share, down from $ 36.5 million (approximately Rs 272 million). ) or 5 cents (approximately 40 rupees). per share in the quarter of the previous year.

 

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