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Twitter does not meet user estimates, but avoids hit by Apple changes

By Sheila Dang

Oct 26 (Reuters) – Twitter Inc. fell short of Wall Street’s expectations for user growth on Tuesday as it faced competition from rival apps like TikTok, but reported quarterly revenue in line with estimates.

The social network has been working to add new features, such as audio chat rooms, to attract users, and it has also rolled out enhancements to its advertising capabilities to reach its goal of doubling annual revenue by 2023.

Advertising revenue was $ 1.14 billion for the quarter ending September 30, in line with consensus estimates.

Twitter said that monetizable daily active users, its term for users receiving ads, was 211 million during the third quarter, down from analyst estimates of 212.6 million, according to IBES data from Refinitiv.

Twitter increased its number of users outside the United States by 5 million from the previous quarter, but its US base remained stable.

The company said it saw a “modest” impact on ad revenue from privacy changes Apple Inc put in place on iOS devices, which prevent advertisers from tracking users on their devices without their consent.

Investors expected Twitter to be relatively protected from the changes, because most of its advertisers do not rely on highly targeted advertising.

Snap and Facebook, which also reported third-quarter revenue, did not meet estimates because changes in Apple’s privacy affected its ability to target and measure digital ads.

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