Twitter blames Elon Musk for revenue decline — RT Business News

Twitter operated at a loss within the second quarter and suffered a decline in income from a 12 months earlier, reflecting struggles that the corporate blamed partly on its pending sale to billionaire Elon Musk.

Income over April-June dropped 1% to $1.18 billion, whereas the underside line swung to a $270 million web loss from a year-earlier revenue of $66 million, Twitter reported on Friday. The corporate incurred an working lack of $344 million, in contrast with an working revenue of $30 million in the identical interval of final 12 months.

Twitter has a historical past of speedy income development, together with a 37% surge in 2021. The second-quarter decline mirrored “promoting trade headwinds related to the macroenvironment, in addition to uncertainty associated to the pending acquisition of Twitter,” the social media big stated.

The quarterly outcomes mark Twitter’s largest underperformance ever relative to the expectations of inventory analysts. Income fell 11% wanting the common Wall Avenue estimate, in keeping with CNBC. Excluding one-time prices and beneficial properties, the corporate reported a lack of 8 cents per share, solely the second quarter within the purple on that foundation in Twitter’s historical past. Analysts had anticipated a per-share revenue of 14 cents.

Twitter agreed to Musk’s $44 billion takeover provide for the corporate in April, however the Tesla CEO known as off the deal earlier this month, alleging that the social media platform had underestimated the variety of faux accounts included in its person figures. After being partly blamed for the corporate’s drop in income, he tweeted, “I’m rubber, they’re glue.”

Twitter reiterated on Friday that the sale to Musk stays in impact and that it’ll press forward with a lawsuit to power the South African-born billionaire to finish the acquisition.

Wall Avenue analyst Dan Ives of Wedbush Securities stated he expects Twitter’s inventory to proceed buying and selling primarily based on investor expectations in regards to the lawsuit towards Musk and hopes for a settlement. The shares are presently about 26% decrease than the agreed takeover worth of $54.20 every.

Twitter claimed to have a mean of 237.8 million “monetizable” customers every day within the second quarter, up 17% from a 12 months earlier. Nonetheless, income from subscriptions and different non-advertising sources dropped 27% to $101 million.

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