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Twitter: A settlement payment worth millions hails the balance sheet

In the third fiscal quarter of 2021, Twitter increased sales by 37 percent to 1.28 billion US dollars, about 1.1 billion euros. As the micro-blooging service announced on Tuesday, significantly increased advertising revenues played into the cards for the company. Bottom line, however, Twitter is making a loss on a $ 766 million settlement.

Twitter boss Jack Dorsey said he was satisfied with the 41 percent increase in ad sales to $ 1.14 billion in the third quarter. He was proud on the good result. The improved personalization and conversation as well as finding relevant news would have helped. Twitter also helped people get paid on Twitter, Dorsey said. Revenues from data licenses and other revenue streams totaled $ 143 million, up 12 percent year over year.

In the US, sales increased 45 percent over the previous year to $ 742 million, while abroad the increase was 28 percent (27 percent after adjusting for currency effects) to $ 542 million.

The number of daily active users has increased significantly. The average monetizable user (mDAU) reached the 211 million mark in the third quarter, an increase of 13 percent compared to the same quarter of the previous year.

But the bottom line is that Twitter has to accept a significant loss of $ 536.8 million. The loss includes a $ 766 million settlement that Twitter had to pay to stave off a 2016 class action lawsuit filed by investors in a settlement. A total of just under $ 810 million should flow by the end of the year. Twitter had given false information about growth and thus deceived investors. Without this burden, the operating profit would have been better. Around $ 56 million would then have been on the books.

However, investors appreciated Twitter’s sales growth in the past third quarter. On the stock exchange, the price rose after a temporary low on Tuesday in the course of Wednesday morning and reached 54.71 euros per share, but is well below the 57.91 euros that a Twitter paper had achieved a week ago.

(olb)

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