Social media giant Twitter reported higher usage figures on Friday but did not meet second-quarter profit and revenue expectations.
Twitter reported revenue of $1.18 billion in the second quarter of 2022, down 1% from a year earlier. Then cancel the takeover bid.
The revenue line was below analysts’ expectations by $1.35 billion. Twitter also reported an adjusted loss of 8 cents a share, below Wall Street’s expectation of 14 cents earnings.
The company said its latest financial results reflect “advertising industry headwinds associated with macroenvironment too The uncertainty is related to the pending acquisition of Twitter by a subsidiary of Elon Musk.
On Friday, Twitter, an online ad game, also reported quarterly ad revenue of $1.076 billion, up 2% from $1.053 billion a year earlier. The company’s first-quarter ad revenue increased 23% year-over-year to $1.11 billion.
The slowdown in Twitter’s digital ad sales follows Snap, which disappointed investors with falling demand for its online ad platform amid fears of inflation and recession. Wall Street will have better visibility in the online advertising landscape when Alphabet and Meta, the parent company of Google, release their latest financial data next week.
Meanwhile, Twitter’s top subscriber metric, monetized daily active users, hit 237.8 million in the quarter, up from 229 million in the first quarter and 206 million last year. This surpassed the Zack Consensus estimate of 236 million mDAU.
Despite the one legal battle with Musk, Twitter is under pressure to prove to investors that it can continue to grow and maintain its user base. In its quarterly results, Twitter also reported a net loss of $270 million, compared to net income of $65.6 million a year earlier.
Amid a potential sale that would leave Twitter in private hands, the social media company chose not to hold a post-earnings conference call with analysts to discuss its results on Thursday. That’s how Wall Street focuses on the ongoing legal battle and drama that Musk’s Twitter faces and its impact on the social media company’s volatile stock price.
On July 8, Musk announced that he would “terminate” the proposed acquisition of Twitter, stating in a letter that the company was “violating” the merger agreement. Then, on July 12, Twitter responded by filing a lawsuit against Musk in the Delaware Chancery Court over his decision to make the $44 billion purchase, saying it was necessary to complete the deal under the merger agreement.
Twitter reiterated in its latest financial results that the deal with Musk is still valid and must be completed. “Twitter believes Musk’s alleged termination is illegal and unfair, and the merger deal stands In fact,” said the social media giant.
“The adoption of the merger agreement by our shareholders is the only remaining regulatory approval or condition. Termination of the Merger by the Merger Agreement. the firstTime to complete merge action if not
be anticipated, as the merger is subject to ongoing litigation, our adoption of the merger agreement shareholders and satisfaction of remaining closing conditions,” added Twitter.
This trial quickly continued into October. Twitter shares tumbled 85 cents, or just over 2%, to $38.63 in premarket trade on Friday.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
