Elon Musk wanted Twitter and then didn’t – it caused some confusion in the group. However, there is a plus in the number of users.
Twitter saw revenue drop and a sizable loss in the last quarter amid a stormy attempt to take over tech billionaire Elon Musk. Revenue fell 1% year-on-year to $ 1.18 billion.
Analysts expected a good $ 1.3 billion. Twitter justified the expansion with the weaker online advertising market, as well as the uncertainty about Musk’s acquisition plans.
Musk announced in April that he wanted to buy Twitter for about $ 44 billion. A few weeks later, he announced a halt to the transaction and finally withdrew in early July. Twitter wants a ruling that will force Musk to complete its acquisition at an agreed price of $ 54.20 per share. At the start of US trade on Friday, the rate fell by more than one percent to a good $ 39 after the data was released.
Snapchat is weakening too
Most importantly, Twitter ended the second quarter with a loss of $ 270 million – after the black figures of almost $ 66 million a year earlier. Acquisition costs rose to $ 33 million in the last quarter.
The number of daily active users that Twitter can reach with ads because they use their own app or web version has increased from 229 million to 237.8 million in three months. In the first quarter, the website gained a good 14 million users.
The pressure on Twitter revenues comes as no surprise, given inflation and a slow economy, many companies are cutting their ad spend. The company that develops the Snapchat photo app saw the weakest sales growth to date, rising 13 percent in the second quarter. Snapchat stock plunged more than a third in early US trading.
Regarding Musk’s takeover attempt, Twitter canceled its usual quarterly teleconference for US companies for the second time in a row where analysts can ask top management for details of business development. (dpa)