Twitter, in Musk fight, posts surprising drop in revenue

London, July 22 (BUS): Twitter reported a quarterly loss on Friday, and a drop in revenue drove Wall Street spreads as more people use the platform.

The latest quarterly earnings numbers provided a glimpse into the social media platform’s performance during months of negotiations with billionaire and Tesla CEO Elon Musk after he said he would buy the company, then changed his mind.

The Associated Press (AP) reported that it was worse than industry analysts had expected.

The company lost $270 million in the April-June period, or 8 cents per share. Wall Street had been expecting earnings per share of 14 cents, according to a survey by FactSet.

Inflation slashed ad spending and that was a huge drag on Twitter’s quarterly revenue, which fell 1% to $1.18 billion. The company also noted “uncertainty” about Musk’s acquisition.

Twitter is not making any calls with analysts and will not publish a letter to shareholders, as it usually does, due to the pending acquisition.

However, Twitter’s core numbers were good. The number of daily active users increased by 16.6% to 237.8 million compared to the same period in the previous year.

Those numbers are particularly impressive following a late Thursday quarterly earnings report from social media company Snap.

Snap also saw ads tumble in the high-inflation environment and shares fell more than 30% on Friday before the opening bell.

Books by Dan Ives, who covers Wedbush technology.

Twitter Inc. shares soared. by 1% at the opening bell on Friday as the clash with Musk overshadowed just about everything. Twitter is trying to force Musk to make good on his April promise to buy the company for $44 billion. Twitter last week sued Musk to complete the deal, and the two sides are preparing for a trial in October to resolve the dispute.

The April-June fiscal quarter saw three tumultuous months for Twitter, beginning with the April 4 revelation that Musk had acquired a massive stake in the company, paving the way for his takeover bid later that month. It didn’t take long for the relationship to soured as Musk publicly tweeted his concerns about Twitter and its employees and indicated he had other ideas.

Twitter argued in court that Musk’s actions and his “repeated disdain for Twitter and its employees” created uncertainty that hurt Twitter’s business operations, employees, and stock price.

She called for an urgent trial so that the company could continue with important business decisions, while Musk sought to wait until next year due to the complexity of the case and his demand for more internal Twitter data on how its account was “spam” fake and automated. bot” — which he cited as the main reason for trying to close the deal.

A judge this week set the trial date for October, siding with Twitter’s fears that too much delay could cause irreparable harm to the company. It will be held in Delaware court, which handles several high-profile commercial disputes, unless Musk and Twitter decide the case before then.

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