Twitter reported second-quarter financial results on Friday that missed analyst estimates for profit, revenue and user growth.
Earnings per share: A loss of 8 cents, versus an expected profit of 14 cents, according to a Refinitiv survey of analysts.
Revenues: $1.18 billion vs. $1.32 billion forecast
Monetized Daily Active Users: 237.8 million versus 238.08 million expected, according to Refinitiv
Twitter said revenue fell 1% year-on-year to $1.18 billion, while Wall Street forecast $1.32 billion, representing 10.5% year-over-year growth.
It was Twitter’s biggest revenue loss ever, with results falling short of estimates by 11%, according to Refinitiv.
The company partly blamed lower revenue on industry headwinds related to the broader challenging macroeconomic environment, as well as “uncertainty related to the pending acquisition of Twitter by Elon Musk.
Twitter and other social media companies that rely heavily on have felt the weight of economic challenges, as inflation concerns, concerns regarding interest rates, persistent supply chain problems and the war in Ukraine have caused some advertisers and brands to adjust their spending.
Given the pending acquisition by Elon Musk, Twitter indicated that it will not provide forward-looking guidance for the third quarter.
Twitter is locked in a legal battle with Musk over his proposed $44 billion takeover of the company, as the Tesla CEO tried to back out of the deal, and Musk alleges that Twitter did not report the number of fake accounts Spam and failed to provide information regarding the fake accounts.
