Twitter is reporting a loss for the most recent quarter as revenue fell despite a rise in users.
(AP) LONDON — Given that more individuals are utilizing the platform, Twitter’s quarterly loss and sliding revenue caught Wall Street off guard on Friday.
The social networking platform’s performance during a months-long negotiation with billionaire and Tesla CEO Elon Musk after he announced his intention to buy the business and later changed his mind was revealed in the most recent quarterly profit data.
It turned out to be worse than industry analysts had predicted.
From April through June, the corporation lost $270 million, or 8 cents per share. According to a FactSet poll, Wall Street was forecasting a per-share profit of 14 cents.
The decline in advertising spending due to inflation had a significant negative impact on Twitter’s quarterly revenue, which fell 1% to $1.18 billion. Additionally, the company highlighted “uncertainty” regarding Musk’s takeover.
Because of the impending acquisition, Twitter will not issue a letter to shareholders and will not hold any calls with analysts.
However, Twitter’s core metrics were strong. In comparison to the same time last year, there were 16.6% more daily active users, or 237.8 million people.
These figures are especially stunning in light of the social media startup Snap’s late-Thursday quarterly earnings release.
In the high-inflation climate, Snap’s advertising also suffered, and the company’s shares fell more than 30% on Friday before the opening bell.
“When compared to the nightmarish quarter of SNAP last night, it demonstrates digital ad spending is not plummeting off a cliff like expected,” commented Dan Ives, who covers technology for Wedbush. “This is good for others in the area such as Facebook, Pinterest, and Google.”
A turbulent three months for Twitter were included in the April-June fiscal quarter, beginning with the April 4 admission that Musk had bought a sizable stake in the business, opening the door for his takeover offer later that month. The relationship quickly soured after Musk publicly posted his worries about Twitter and its staff and gave away that he was having second thoughts.
Musk’s activities and his “continuous disparagement of Twitter and its workers,” according to Twitter, generated uncertainty that was detrimental to the company’s business operations, personnel, and stock price.
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