Twitter revenue woes blamed on advertising market


Twitter reported weak revenue numbers for the June quarter, blamed on the advertising and billionaire Elon Musk’s now stalled takeover.

Revenue for the three months to June was down 1% to $US1.18 billion.

The company said the result reflected “advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter”.

Advertising revenue totaled $1.08 billion, an increase of 2%.

The net loss was $270 million, representing a net margin of -23% and diluted EPS of -$0.35.

This compares to net income of $66 million, a net margin of 6% and diluted EPS of $0.08 a year ago.

Average monetisable daily active usage (mDAU) was 237.8 million, up 16.6% compared to the same three months in 2021.

The increase was driven by ongoing product improvements and global conversation around current events.

Industry analysts say uncertainty in keeping advertisers away.

Twitter and Musk are now in a legal battle, with the social media platform trying to force the entrepreneur to close the $US44 billion takeover.

Musk, however, says Twitter is in material breach of multiple provisions of the agreement, making “false and misleading representations”.

Twitter didn’t hold an earnings call or provide the usual commentary on the results: “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.”

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