Twitter Surpasses 210 Million Daily Users, Matches Q3 Revenue Projections

Social media network takes a $537 million net loss after a one-time legal settlement

Twitter on Tuesday reported it added 5 million new daily users during the third quarter — pushing the company to 211 million users — while matching Wall Street’s Q3 revenue estimates.

The San Francisco-based company now has 211 million daily average users overall. Twitter reported a 67 cent loss per share — well blow the 15 cent earnings per share analysts had projected — while its revenue of $1.28 billion was in line with analyst expectations.

The social media giant also took a one-time hit of $766 million related to an $809.5 million settlement the company announced in September for misleading investors about its user growth. That was enough to swing Twitter to a $537 million net loss for the quarter.

Twitter also posted a 41% year-over-year growth in ad sales with $1.14 billion.

The company said it’s expecting revenue of $1.5 billion to $1.6 billion in the fourth quarter. Twitter will hold a conference call with analysts at 3 p.m. PT on Tuesday.

“I am proud of our third quarter results. We’re improving personalization, facilitating conversation, delivering
relevant news, and finding new ways to help people get paid on Twitter,” Jack Dorsey, Twitter’s CEO, said.
“Average monetizable DAU (mDAU) reached 211 million, up 13% year over year in Q3, accelerating from 11% year
over year growth in Q2, driven by ongoing product improvements and global conversation around current events.”

“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,” Ned Segal, Twitter’s CFO, added. “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.”

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