Twitter spent $33 million on Elon Musk’s proposed acquisition of the company between April and June 2022. It also announced an increase in monthly daily users to 237 million, but a net loss of $270 million, which was worse than planned.
Musk has since changed his mind regarding the purchase, and a court date in October has been set because Twitter wants to force the deal through.
A $1 billion termination fee could be at stake.
Twitter declined to discuss its most recent financial data, citing a “pending purchase.” The report is valid from April through June 2022.
Twitter has doubled down on its stance on the amount of spam and fraudulent accounts on the network, which Elon Musk cited as the basis for ending the partnership.
“We have performed an internal review of a sample of accounts and estimate that the average of false or spam accounts during the second quarter of 2022 represented fewer than 5% of our [monthly active users] during the quarter,” it said – although it added that the figure was an estimate.
Twitter’s revenue is expected to be $5 billion in 2021, but its share price has dropped by 45 percent in the last year.
Twitter is in “purgatory,” according to Forrester analyst Mike Proulx.
“Twitter now has an acquirer who no longer wants it, a CEO and board who wants to get rid of it, and an employee base which is caught in the middle of it all,” he said.
“The real victim from all this drama is Twitter itself.”
Snap, which controls Snapchat, posted sales of $1.11 billion for the three months ending in June, which fell short of Wall Street projections.
Following the news, its stock dropped by more than 25%. In response to growing costs, it stated that several of its advertisers had reduced their spending.
It also stated that it was impacted by an Apple adjustment made last year that allowed iPhone and iPad users to opt out of being tracked by apps.
Because they can no longer monitor their users’ other online activity and adapt advertising accordingly, this has had an impact on ad customization, which is a very valuable service to internet corporations.
Twitter reported a 2 per cent increase in ad revenue to $1.08 billion.
Alphabet, the parent company of Meta and Google, is set to announce profits next week.
(Adapted from TeechCrunch.com)