Twitter Earnings (TWTR) Q2 2022

The official profile of Elon Musk on the social network Twitter.

Raphael Henrique | Light Rocket | fake images

Twitter reported second-quarter earnings on Friday that fell short of analyst estimates for earnings, revenue and user growth.

Twitter shares were flat on Friday morning.

These are the key numbers:

  • Earnings per share: A loss of 8 cents, adjusted, versus expected gains of 14 cents, according to a Refinitiv survey of analysts.
  • Income: $1.18 billion vs. $1.32 billion
  • Monetizable Daily Active Users (mDAU): 237.8 million vs. 238.08 million expected, according to Refinitiv

Twitter said revenue fell 1% year over year to $1.18 billion. Wall Street was expecting $1.32 billion, representing 10.5% year-over-year growth. It marked Twitter’s biggest revenue loss, with results 11% below estimates, according to Refinitiv.

The company blamed the revenue decline in part on ad industry headwinds linked to the broader challenging macroeconomic environment, as well as “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.” .

Twitter and other social media companies that rely heavily on advertising have felt the brunt of macroeconomic challenges, as fears around inflation, concerns about interest rates, ongoing supply chain issues and the war in Ukraine prompted some advertisers and brands to adjust their ad spend. On Thursday, Snap reported disappointing second-quarter results and said it plans to cut hiring due to weakening revenue growth, sending its shares down 25% in extended trading.

Given the pending acquisition by Musk, Twitter said it will not provide forward-looking guidance for the third quarter. Nor is he arranging a conference call with analysts to discuss earnings results.

Costs and expenses during the quarter soared 31% year over year to $1.52 billion. The company posted a loss of 8 cents per share, reporting its first adjusted loss in two years and the second in its history.

Twitter said costs related to the Musk acquisition were about $33 million in the second quarter. Severance-related costs were approximately $19 million in the second quarter. Earlier this month, Twitter laid off a third of its talent acquisition team, according to the Wall Street Journal.

Twitter is locked in a legal battle with Musk over his proposed $44 billion takeover of the company. Tesla’s CEO has tried to back out of the deal. Musk claims that Twitter did not report the number of spam and fraud accounts and did not provide information about fake accounts. Twitter sued Musk and some of his associates earlier this month over allegations that the billionaire “is refusing to honor his obligations to Twitter and his shareholders because the deal he signed no longer serves his interests.” his personal”.

Twitter won an early victory Tuesday when a chancellor at the Delaware Court of Chancery ruled in favor of a five-day expedited trial set to begin in October.

CNBC’s Robert Hum contributed to this report.

CLOCK: The likely outcome is that Elon ends up paying a breakup fee, the former Twitter CEO says.

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