The social media platform attributes Musk as a factor in its Q2 revenue results
Twitter recently reported its Q2 2022 earnings. Throughout the recent months, the company’s total revenue dipped from $1.19 billion USD (roughly $2.4 billion CAD) year-over-year down to $1.18 billion USD (roughly $2.3 billion CAD). Twitter blames Elon Musk as a factor as well as ad industry issues.
In Twitter’s latest earnings report, the company reveals that it brought in a total of $1.18 billion USD (roughly $1.5 billion CAD), coming up short of its target. In the report, Twitter cites uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk” as a factor of this lowered
On April 25th, Twitter announced that it entered an agreement with Tesla CEO Elon Musk to be acquired for $44 billion USD (roughly $60 billion CAD). Once and if the deal is complete, Musk is to take sole ownership of the social media platform for $54.20 USD (roughly $69.60 CAD) per share in cash. Following the acquisition, Twitter is to become a privately held company.
However, since the announcement of the deal, Musk has been finding ways to try and back out. Tesla’s CEO is said to have been attempting to prove how much of Twitter’s user base is comprised of fake and spam accounts. Earlier this month, Musk filed a letter to the U.S. Securities and Exchange Commission (SEC), claiming Twitter is “in material breach” of its contract.
Twitter’s revenue woes aren’t exclusive to Musk, as Industry-wide ad problems persist and are causing hiccups. Twitter’s ad sales are indeed up 2 percent year over year. That said, this wasn’t enough to counterbalance the loss in revenue. Twitter reported a net loss of $270 million USD (roughly $35 million CAD). Additionally, the company saw a profit decrease of $66 million USD (roughly $84 million CAD) during the same quarter in 2021. Twitter hopes to see ad sales growth in order to reach revenue milestones.
While revenue is down, usage and user base are up this quarter. Twitter reports that the social media platform has reached over 237 million daily users. This figure is up from 229 million during its last quarter.