Although Twitter received a lot of attention last quarter as a result of the American election campaign, it had to disappoint investors: the company only gained one million new active users during that period. However, analysts had expected nine million additional users. All of this resulted in Twitter’s share being significantly lower after the market closed.
For some time now, Twitter has only been giving out numbers about the number of users it can reach with its ads every day. That number rose from 186 to 187 million in three months.
Revenue rose 14 percent year over year to $ 936 million, while third-quarter earnings declined more than a fifth to around $ 28.7 million.
Boycott advertisers don’t interfere with Facebook
The competitive platform Facebook generated more than a fifth more revenue from advertising in the third quarter, despite the boycott announced by many large companies this summer. The tech group, which also owns Instagram and WhatsApp, is rather pessimistic about the near future. The threat of stricter regulations for social media companies creates uncertainty.
Third quarter revenue was $ 21.5 billion, up 22 percent from the same period last year. This increase was entirely due to higher revenue from advertisers using Facebook platforms. Operating income rose 12 percent to $ 8 billion.
This does not seem to have any impact on the advertising freeze that Unilever, Coca-Cola, Starbucks and Pepsico announced against Facebook, among others. The companies announced in July that they would no longer advertise on Facebook for the time being, as the company was doing too little against racism and hatred on its platforms.
Under attack in the US, but more users
A statement by Finance Director David Wehner shows that the dangers for Facebook do not come from the corner of advertisers. He foresees “increasing uncertainty” for 2021. This is partly due to stricter data protection measures in the operating system for iPhones, which may make it more difficult to use personal data.
In addition, the authorities in the European Union are restricting the transfer of personal data by social media companies to the USA after the European Court of Justice has declared a contract on the subject invalid. The American company is also being attacked in its own country. A committee of US Congressmen recently ruled sharply on Facebook’s monopoly, alluding to the company’s forced split.
Despite the increasing criticism of Facebook, the number of users is still increasing significantly. In September, the American Internet company’s websites had 1.8 billion daily active users, 12 percent more than a year earlier. The number of monthly active users rose just as quickly to over 2.7 billion people.