Twitter Reports Third Quarter Net Loss Due to Legal Settlement | WGN 720 radio

FILE – In this file photo from September 18, 2019, a screen shows the Twitter share price on the New York Stock Exchange. Twitter will release its results after markets close on Tuesday, October 26, 2021 (AP Photo / Mark Lennihan, File)

Twitter posted a net loss on Tuesday mainly due to a lawsuit, but its revenue rose sharply in the third quarter, boosted by strong ad sales around the world.

The San Francisco-based company said on Tuesday its net loss was $ 536.8 million, or 67 cents per share, in the July-September quarter. That’s down from earnings of $ 28.7 million, or 4 cents a share, in the same period a year earlier.

The loss included a one-time net charge of $ 766 million resulting from a shareholder lawsuit the company settled. Twitter said last month it would pay $ 809.5 million to settle a consolidated class action lawsuit alleging the company misled investors about the growth of its user base and the number of users interacting with its platform.

Revenue rose 37% to $ 1.28 billion from $ 936.2 million.

Analysts on average expected revenue of $ 1.29 billion, according to a FactSet survey.

A big source of concern for investors has been Apple’s iOS privacy changes, which hit rival Snap’s quarterly results announced earlier this month. Twitter said it was still too early to assess the effects of the changes, but the impact on revenue for the quarter was “below expectations.”

Twitter said it had 211 million daily active users, on average, in the third quarter, up 13% from the previous year. Analysts expected 211.5 million.

Shares of Twitter rose $ 1.29, or 2.1%, to $ 62.72 in after-hours trading.

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