Twitter reported a net loss Tuesday mainly due to a litigation settlement. However, its revenue rose sharply during the third quarter thanks to solid ad sales across the globe.
The company, which is based in San Francisco, reported Tuesday that it lost $536.8million, or 67c per share, during the July-September quarter. This is a decrease from the $28.7million profit, or 4 cents per shares, that was reported in the same period last year.
In addition to the loss, there was a $766 million net charge from a settlement of a shareholder lawsuit. Twitter announced last month that it would pay $809.5 million in settlement to a class action lawsuit that claimed that Twitter misled investors about its user base growth and the number of users who interacted with its platform.
From $936.2 million, revenue rose 37% to $1.28 Billion.
According to FactSet, analysts expected revenue of $1.29 trillion on average.
Investors have been concerned by Apple’s iOS privacy updates, which were announced in the wake of Snap’s quarterly results. Twitter stated that while it was too early to evaluate the effects of these changes, the impact on quarter revenue was “lower-than expected”.
Twitter reported that it had 211 million active users per day in the third quarter. This is 13% more than a year ago. Analysts expected 211.5 million.
After-hours trading saw Twitter shares rise $1.29 or 2.1% to $62.72.
