US-based microblogging and social networking service Twitter reported a net loss of $536.7 million in the third quarter of 2021, according to its financial results released Tuesday.

The results showed a steep decline from net income of $28.6 million in the same period of last year.

The firm's revenue, on the other hand, rose 37% to $1.28 billion from $936 million during that period.

Advertising revenue totaled $1.14 billion, an increase of 41% year-on-year, the statement said.

The company said it estimates total revenue to come between $1.5 billion to $1.6 billion in the fourth quarter.

It said the net loss includes a one-time litigation-related net charge of $809.5 million to settle a shareholder class action lawsuit.

Twitter announced on Sept. 20 that it will pay the amount to settle the lawsuit, which alleged that the firm misled investors about its user base growth and the number of users that interacted with the platform.

Average monetizable daily active usage came at 211 million in the third quarter, compared to 187 million in the same period of the previous year, the statement said.

“We continue to expect total revenue to grow faster than expenses in 2021, excluding the litigation settlement announced in the third quarter,” it added.

Twitter’s stock price was down 1.1% in after-hours trading on the New York Stock Exchange. (Anadolu Agency)