Rafael Henrique | Lightrocket | Getty Images Twitter reported second-quarter earnings on Friday that missed analysts’ estimates for profit, revenue and user growth. Shares of Twitter were down more than 1% in early trading. Here are the key numbers:
Earnings per share: Loss of 8 cents, adjusted, versus expected earnings of 14 cents, according to Refinitiv’s 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 fell 1 percent year over year to $1.18 billion. Wall Street had expected $1.32 billion, representing a 10.5% year-over-year increase. It posted Twitter’s biggest revenue loss ever, with results coming in 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 heavily reliant on advertising have felt the brunt of macroeconomic challenges, as fears about inflation, interest rates, ongoing supply chain issues and the war in Ukraine have led some advertisers and brands to adjust their advertising costs. 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 Musk’s pending acquisition, Twitter said it would not provide forward-looking guidance for the third quarter. It also does not host 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 lost 8 cents per share, reporting its first adjusted loss in two years and the second in its history. Twitter reported that costs related to the Musk acquisition were about $33 million in the second quarter. Costs related to the severance 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 a proposed $44 billion takeover of the company. Tesla’s CEO tried to back out of the deal. Musk claims that Twitter supported the number of spam and fraud accounts and did not provide information about fake accounts. Twitter sued Musk and some of his partners earlier this month over allegations that the billionaire “refuses to honor his obligations to Twitter and its shareholders because the agreement he signed no longer serves his personal interests.” Twitter scored an early victory on Tuesday when the Delaware Chancellor of the Exchequer ruled in favor of a five-day fast-track trial to begin in October. CNBC’s Robert Hum contributed to this report. WATCH: Elon likely to have to pay a breakup fee, ex-Twitter CEO says
