Twitter on Friday reported earnings for the second quarter that missed analyst forecasts for revenue, revenue and user growth. The company blamed the ad industry for headwinds and “uncertainty” about Elon Musk and his withdrawn takeover bid.
CNBC reported Friday that Twitter’s second-quarter earnings fell short of analysts’ revenue, revenue and user growth expectations. Twitter’s share price was unchanged in early trading on Friday. CNBC published key figures from the report:
- That’s an adjusted loss of 8 cents compared to an expected profit of 14 cents, according to a survey of analysts by Refinitiv.
- $1.18 billion compared to $1.32 billion
- 237.8 million compared to the expected 238.08 million, according to Refinitiv.
Twitter said revenue fell 1 percent year-over-year to $1.18 billion, while Wall Street expected $1.32 billion, corresponding to 10.5 percent annual growth. Refinitiv noted that its latest earnings report marked Twitter’s biggest loss of revenue to date, with results 11 percent below estimates.
Twitter CEO Parag Agrawal
Twitter blamed some of the revenue drop on advertising industry problems with its online advertising industry, as well as “uncertainties about the imminent acquisition of Twitter member Elon Musk.” Musk backed out of the deal to buy the social network earlier this month, sparking a legal battle between the two sides.
Advertising-heavy social media companies like Twitter have felt the impact of macroeconomic concerns as concerns about inflation, interest rates and supply chain issues have prompted many advertisers and brands to cut their advertising costs. Snap reported similarly weak earnings recently and slashed its stock price 36 percent in Friday morning trading, planning to slow hiring due to weaker revenue growth.
Twitter said it would not provide future forecasts for the third quarter due to the ongoing legal battle with Elon Musk over the acquisition of the company.
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Source: Breitbart
