Twitter reported results for the second quarter on Friday that missed analyst estimates on earnings, revenue and user growth.
Shares of Twitter closed up about .8% on Friday.
Here are the key numbers:
- Earnings per share: A loss of 8 cents, adjusted, vs expected earnings of 14 cents, according to a Refinitiv survey of analysts
- Revenue: $1.18 billion vs $1.32 billion
- Monetizable Daily Active Users (mDAUs): 237.8 million vs 238.08 million expected, according to Refinitiv
Twitter said revenue slid 1% year over year to $1.18 billion. Wall Street had expected $1.32 billion, representing 10.5% growth year over year. It marked Twitter’s biggest revenue miss ever, with results coming in 11% below estimates, according to Refinitiv.
The company partially blamed the revenue drop on ad industry headwinds tied 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 with a heavy reliance on advertising have felt the weight of economic challenges, as fears around inflation, interest rate concerns, continued supply chain issues and the war in Ukraine led some advertisers and brands to adjust their ad spend. On Thursday, Snap reported disappointing second-quarter results, and said it plans to slow hiring due to weakening revenue growth, causing its shares to plunge 25% in extended trading.
Given the pending acquisition by Musk, Twitter said it will not provide forward-looking guidance for the third quarter. It’s also not hosting a conference call with analysts to discuss the earnings results.
Costs and expenses during the quarter ballooned 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 social network Twitter.
Rafael Henrique | Lightrocket | Getty Images
Image and article originally from www.cnbc.com. Read the original article here.