Twitter (TWTR34) Loses $270M in Q2, Attributes Result to Dispute With Musk

Social platform Twitter (TWTR34) posted a net loss of US$ 270 million in the second quarter of 2022 (2Q22), reversing net income of US$ 66 million from the second quarter of 2021, the company announced on Friday (22).

The social network’s parent lost $0.35 a share, or $0.08 in adjusted terms. The data contradicted the expectations of analysts consulted by FactSet, who had expected a gain of US$ 0.14 per share.

Following the result, Twitter shares (TWTR) were down 2.33% at $38.60 around 9:30 am ET on the Nasdaq premarket. At the opening, the shares began to operate close to stability: at 10:36 am, assets fell 0.86%, to US$ 39.18. Assets closed up 1.11% at $39.96.

Revenue fell 1% in the quarter (to $1.18 billion), according to the balance sheet, although growing 2% on a constant currency basis. The value also frustrated the market projection, which was US$ 1.32 billion. The data reflects headwinds in the advertising industry associated with the macroeconomic environment, as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk, the company said.

The number of daily active users (mDAU) was 237.8 million in the second quarter, an increase of 16.6% compared to the second quarter of last year.

According to the company, the increase was driven by continuous product improvements and global conversations about current events.

Net cash flow from operating activities for the quarter was $30 million, compared to $382 million in the same period last year.

Capital expenditures totaled $154 million, compared to $276 million in the same period last year.

Given the imbroglio caused by Elon Musk’s withdrawal from buying Twitter, the company will not hold a conference call, issue a letter to shareholders or provide financial advice.

In April, Tesla’s CEO submitted an offer to buy the company at $54.20 per share, which would represent about $44 billion.

After weeks of negotiations, however, the billionaire backtracked and dropped the transaction in July, on the grounds that the social network had not been transparent about fake account numbers and spam.

In response, Twitter filed a lawsuit against Musk to try to force the settlement to completion. The trial will take place in September, after the American justice opposed the appeals of the businessman’s lawyers and opted for a faster process.

(with Estadão Content)

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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