What you need to know
- Twitter released its Q2 2022 financial earnings on Friday.
- The company reported $1.18 billion in revenue, slightly below analyst expectations
- Twitter had a total of 237 million monetizable daily active users.
As Twitter is dealing with a pending acquisition by Elon Musk, the company reports a slight decrease in revenue but an increase in monetizable active daily users in Q2 2022, compared to the same period a year ago.
In its earnings report, Twitter’s Q2 2022 revenue totaled $1.18 billion, a decrease of 1% year-over-year, “reflecting advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter.”
Twitter said in the report that its average monetizable daily active users was 237.8 million, up 16.6% compared to the same period a year ago. This was an increase from the 229 monetizable active daily users that were reported in Q1 2022.
“The increase was driven by ongoing product improvements and global conversation around current events,” Twitter said.
Per the report, Twitter’s expenses totaled $.152 billion, an increase of 31% YoY, adding that most of that cost was related to the pending acquisition of Twitter which was approximately $33 million in the quarter.
Operating loss amounted to $344 million, Twitter said.
Twitter said in its earnings report that “given the pending acquisition of Twitter by an affiliate of Elon Musk, we will not host an earnings conference call, issue a shareholder letter, or provide financial guidance in conjunction with our second quarter 2022 earnings release.”
Analysts expected Twitter earnings to come in at about $0.16 per share – a year-over-year shift of -20% – while revenues could be listed at $1.33 billion, which is up 11.8% from the same period a year ago.
This month, Elon Musk decided to back out of buying Twitter for $44 billion and subsequently was sued by Twitter. Musk’s lawyers responded to Twiter’s lawsuit, seeking to delay its hearing scheduled for September.
The judge sided with Twitter granting it a trial set for October.
“We remain cautiously optimistic that Twitter can enforce the agreement though realize this could drag on for some time,” wrote Raymond James analyst Aaron Kessler on July 11, the day before the suit was filed.