The shares of Twitter climbed as much as 4.3% on Thursday after the company sold its mobile ad business MoPub for $1.05 billion, expressing confidence that it will be able to replace the lost revenue in time to meet its revenue target of at least $7.5 billion by 2023.
Applovin , a marketing software company, purchased the unit in an all-cash transaction.
Last year, MoPub brought in around $188 million in revenue for Twitter. It works similarly to Google's DoubleClick in that it allows businesses to maintain track of ad inventory in real-time.
In the last fiscal year, which ended on December 1, Twitter earned $3.72 billion in total revenue.
The transaction will allow the social media company to accelerate the development of owned and operated revenue products and drive growth in key areas for the service, such as performance-based advertising, small and medium-sized business offerings, and commerce initiatives, according to the company.
The $809.5 million litigation settlement that Twitter disclosed on September 20 will be charged to operations in the third quarter, according to Twitter.
The company agreed to pay that sum to settle a five-year-old lawsuit alleging that its executives misled investors by providing a rosier picture of the company ahead of its public offering.