Twitter closed the second quarter with losses of 270 million dollars (about 264 million euros), compared to the profit of 65 million dollars that it reached in the same period of the previous year. The income of the social network between April and June 2022 fell by 1.1% to 1,176.6 million dollars. The company has not met the expectations of analysts who had estimated revenue for the second quarter of 1,320 million.
The multinational has blamed the drop in revenue on “uncertainty related to the pending acquisition of Twitter by Elon Musk” and lower spending on digital advertising due to the current economic uncertainty. The social network announced in a statement that “in light of the pending acquisition by an affiliate of Elon Musk, Twitter will not hold an earnings conference call for its second quarter 2022 results.”
Twitter’s monetizable daily active users rose to 237.7 million from 229 million in the first quarter and up 16.6% from a year ago. The figure was above analyst estimates of 236 million. Of the total active users, Twitter had 41.5 million in the US, compared to 39.6 million in the first quarter and 14.7% more than a year earlier. Meanwhile, at the international level, the annual increase was 17%, up to 196.3 million, compared to 189.4 million in the first quarter.
In the first half, the company obtained a net profit of 243.3 million dollars, 82% more than a year earlier, while revenues rose 6.8% to 2,377.6 million.
Twitter’s costs have risen 31% to $1.52 billion, the company reported, with more than $33 million spent in the second quarter on issues related to the Musk acquisition. Costs related to severance pay were approximately $19 million in this same period. The company said a few weeks ago that it was laying off a third of its talent hiring team.
The publication of the results comes after a Delaware court specializing in US trade disputes has decided that the trial between Twitter and the tycoon will be held next October and last five days, after agreeing with the social network that had requested a speedy trial because Musk’s moves not to carry out the acquisition of the social platform for 44,000 million dollars, was harming the company’s business.
Twitter’s results come a day after rival Snap lost more than a quarter of its stock value after missing revenue and earnings expectations and announced plans to slow hiring and adjust its business strategy.
After the boost experienced by social platforms with the pandemic, they are now suffering as brands cut their advertising spending with inflation, rising rates and uncertainties arising from the war in Ukraine and the problems in the supply chains. supply.
Twitter shares rise slightly today, outperforming $39.6, still a long way from the $54.20 per share that Musk agreed to. The company’s shares are down around 10% so far this year, while the Nasdaq has lost more than 20%.
Twitter is preparing for the legal confrontation against Musk, after the founder of Tesla communicated to the social network his resignation from the purchase contract, arguing that it is not believed that less than 5% of the social network’s accounts are spam or false accounts. . He puts the figure at around 20%. In mid-May, Musk had already temporarily suspended the purchase, agreed at the end of April, pending details on the number of fake accounts.
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