Twitter reported second-quarter results on Friday that missed analysts’ estimates on earnings, revenue and user growth.
Shares of Twitter closed up about 0.8% on Friday.
Here are the key numbers:
- Earnings per share: An adjusted loss of 8 cents, versus expected earnings of 14 cents, according to a Refinitiv poll of analysts
- Income: $1.18 billion vs. $1.32 billion
- Earnable Daily Active Users (mDAU): 237.8 million versus the expected 238.08 million, according to Refinitiv
Twitter said revenue fell 1% year over year to $1.18 billion. Wall Street had expected $1.32 billion, representing 10.5% year-over-year growth. It marked Twitter’s biggest revenue loss ever, with results coming in 11% below estimates, according to Refinitiv.
The company blamed the decline in revenue in part on advertising industry struggles tied to the broader challenging macroeconomic environment, as well as “uncertainty regarding the pending acquisition of Twitter by an affiliate of Elon Musk.”
Twitter and other social media companies with a heavy reliance on advertising have felt the brunt of the economic challenges, as fears about inflation, interest rate concerns, ongoing supply chain problems and the war in Ukraine caused some advertisers and brands to adjust their advertising spending. On Thursday, Snap reported disappointing second-quarter results and said it plans to slow 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. It also isn’t holding a conference call with analysts to discuss earnings results.
Costs and expenses during the quarter rose 31% year-over-year to $1.52 billion. The company swung to a loss of 8 cents per share, reporting its first adjusted loss in two years and the second in its history.
The official profile of Elon Musk on the Twitter social network.
Rafael Henrique | Light Rocket | Getty Images
