Elon Musk’s official profile on the social network Twitter.
Raphael Heinrich | LightRocket | Getty Images
Twitter informed of Second-quarter results on Friday that missed analysts’ estimates on earnings, revenue and user growth.
shares of Twitter Were down a bit on Friday morning.
Here are the prime numbers:
- earnings per share: Loss of 8 cents, adjusted, versus expected earnings of 14 cents, according to the Refinitiv survey of analysts
- revenue: $1.18 billion versus $1.32 billion
- Monetizable Daily Active Users (MDAUs): Refinitiv. 237.8 million versus 238.08 million expected as per
Twitter said revenue fell 1% year over year to $1.18 billion. Wall Street had expected $1.32 billion, representing an increase of 10.5% year over year. According to Refinitiv, this is Twitter’s biggest revenue lapse to date, with results falling 11% below estimates.
The company partly attributed the decline in revenue to advertising industry headwinds associated with the broader challenging macroeconomic environment, as well as “uncertainty related to the pending acquisition of Twitter by an associate of Elon Musk.”
Twitter and other social media companies with heavy reliance on advertising have felt loads of economic challenges, such as continuing inflation, interest rate concerns, supply chain issues and war in ukraine This prompted some advertisers and brands to adjust their advertising spend. on Thursday, crack informed of Disappointing second-quarter results, and said it plans to slow hiring due to weak revenue growth, caused its shares to fall 25% in extended trading.
In view of the pending acquisition by muskTwitter said it would not provide forward-looking guidance for the third quarter. It’s also not hosting a conference call with analysts to discuss earnings results.
Costs and expenses increased 31% year over year to $1.52 billion during the quarter. The company lost 8 cents per share, its first adjusted loss in two years and the second in its history.
Twitter said costs related to the Musk acquisition were approximately $33 million in Q2. Severance-related expenses were approximately $19 million in the second quarter. Earlier this month, the company laid off a third of its talent acquisition team, according to wall street journal,
Twitter shuts down in legal battle with Musk On its proposed $44 billion acquisition of the company, Tesla CEO tried to back out of the deal, Musk claims that Twitter underestimated the number of spam and fraudulent accounts and failed to provide information about fake accounts. Twitter sued Musk and some of his associates alleged earlier this month that the billionaire “refused to honor his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests.” Is.”
Twitter posted an early win on Tuesday when A Delaware Court of Chancery Chancellor ruled In favor of accelerating the five-day trial starting in October.
, CNBC’s Robert Hum contributed to this report.
watch: Elon winds up needing to pay breakup fee, says former Twitter CEO