Twitter Misses Earnings Expectations, Blames Elon Musk

Elon Musk shrugs
Scott Olsen/Getty

Twitter reported earnings for the second quarter on Friday missing analyst estimates on revenue, earnings, and user growth. The company blamed ad industry headwinds and “uncertainty” linked to Elon Musk and his revoked buyout offer.

CNBC reports that Twitter reported earnings for the second quarter on Friday that missed analyst expectations on earnings, revenue, and user growth. Twitter’s share price remained flat in Friday morning trading. CNBC posted the key numbers from the report:

  • 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

Twitter stated that revenue slid by one percent year-over-year to $1.18 billion while Wall Street expected $1.32 billion, representing 10.5 percent growth year-over-year. Refinitiv noted that the latest earnings report marks Twitter’s biggest revenue miss so far, with results coming in 11 percent below estimates.

Twitter CEO Parag Agrawal

Twitter CEO Parag Agrawal

Twitter blamed some of the revenue drop on ad industry headwinds linked to the online advertising industry as well as “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.” Musk pulled out of the deal to buy the social media platform early this month, leading to a legal war between the two sides.

Social media companies such as Twitter with a heavy reliance on advertising have felt the effect of macroeconomic challenges as fears surrounding inflation, interest rates, and supply chain issues have led many advertisers and brands to reduce their ad spend. Snap reported similarly poor earnings recently and plans to slow hiring due to weakening revenue growth, resulting in a drop in share price of 36 percent in Friday morning trading.

Twitter said that due to the ongoing legal battle with Elon Musk over the acquisition of the company, it would not provide forward-looking guidance for the third quarter.

Read more at CNBC here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan

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