- Twitter reported earnings for the second quarter on Friday that missed analyst estimations.
- Twitter blamed the revenue miss on ad industry headwinds and “uncertainty” tied to the pending acquisition of the company by Elon Musk.
Earnings per share: A loss of 8 cents, adjusted, vs expected earnings of 14 cents, according to a Refinitiv survey of analysts
Revenue: $1.18 billion vs $1.32 billion
Monetizable Daily Active Users (mDAUs): 237.8 million vs 238.08 million expected, according to Refinitiv
The company partially blamed on ad industry headwinds tied to the broader challenging macroeconomic environment, as well as “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”
The number of daily active users rose 16.6% to 237.8 million compared with the same period a year before.
Twitter chalked up the gains to “ongoing product improvements and global conversation around current events."
Overshadowing Twitter’s latest sales results is its legal fight with Musk to make good on his April promise to buy the company for $44 billion. Twitter last week sued Musk to complete the deal and both sides are bracing for an October courtroom trial to resolve the dispute.
Given the pending acquisition, Twitter said it wouldn't hold its usual quarterly earnings conference call or issue a shareholder letter.
Twitter and other social media companies with a heavy reliance on advertising have felt the weight of macroeconomic challenges, as fears around inflation, interest rate concerns, continued supply chain issues and the war in Ukraine led some advertisers and brands to adjust their ad spend.
On Thursday, Snap reported disappointing second-quarter results, and said it plans to slow hiring due to weakening revenue growth, causing its shares to plunge 25% in extended trading.