The social platform at the blue bird published this Friday the figures relating to its activities on behalf of the second quarter of the year. These revealed two important things.
The first concerns the number of users and revenue. It appeared that between April and June, Twitter certainly saw growth in both of these areas. However, it is significantly lower than analysts’ forecasts. The second key information revealed by the results is related to the sales agreement concluded with Elon Musk. Twitter said it spent $33 million on the deal.
Results below observers’ expectations
According to the report published by Twitter, the number of monetizable daily active users of the social platform managed to reach the mark of 237.8 million users. This represents an increase of 16.6% compared to 2021. However, this figure remains slightly lower than the estimate which was 238.08 million.
The valuations also estimated that Twitter would succeed in making a turnover of $1.32 billion. Instead, it rather stabilized around $1.18 billion. This represents a drop of 5% compared to the first quarter and a drop of 1% compared to the second quarter of 2021.
No one can say the reasons that led the experts to expect greater growth for Twitter in the second quarter of 2022. But one thing is certain, no one could have predicted that on April 14, 2022, the richest man in the world was going to make a takeover bid for Twitter. Better, no diviner could have imagined the real saga that followed.
Recently, Elon Musk even indicated that he wanted to withdraw from the takeover agreement he finally signed with Twitter executives. A story worthy of a soap opera that ultimately served the social platform throughout the past quarter. Twitter obviously agrees.
To justify its results, the social network evoked “headwinds” among which we find publicity, economic gloom and above all the uncertainty caused by Musk’s attempts to withdraw from the agreement.
Twitter records an increase in spending at the same time
The headwinds that Twitter has had to deal with have mostly resulted in increased costs and expenses for the platform. Compared to the past year, these increased by almost 31% to reach the sum of 1.52 billion dollars.
Like its counterparts, Twitter has had to resort to restructuring and downsizing policies. Thus, as part of the departure procedure initiated for a number of executives, the social platform had to pay nearly $ 19 million in severance pay on behalf of this quarter. For its part, the offer to acquire Elon Musk would have cost Twitter nearly $33 million in expenses in April and June.
Charges which are expected to increase in the coming weeks because of the desire of the richest man in the world to renege on the agreement. We must also talk about the hiring freeze forecasts. These led Twitter to recently lay off 30% of its talent acquisition team. Figures that will probably appear in the results of the second quarter of 2022.
Source: Tech Crunch