Tech

Twitter (TWTR) Q2 2022 Earnings

On Friday, Twitter reported second-quarter results that missed analysts’ estimates for profit, revenue and user growth.

Twitter shares were down slightly on Friday morning.

Here are the key numbers:

  • Earnings per share: The loss was 8 cents, adjusted, against an expected profit of 14 cents, according to a survey of analysts by Refinitiv.
  • income: $1.18 billion vs. $1.32 billion
  • Monetizable Daily Active Users (mDAU): 237.8 million versus expectations of 238.08 million, according to Refinitiv

Twitter reported a 1% year-over-year decline in revenue to $1.18 billion. Wall Street had expected $1.32 billion, representing 10.5% year-over-year growth. According to Refinitiv, it marked Twitter’s biggest drop in earnings ever, with results 11% below estimates.

The company partly blamed the decline in advertising industry revenue on a broader challenging macroeconomic environment, as well as “uncertainty surrounding the unplanned acquisition of Elon Musk’s Twitter affiliate.”

Twitter and other social media companies that rely heavily on advertising have felt the brunt of the economic woes as fears over inflation, interest rate issues, lingering supply chain problems and the war in Ukraine have forced some advertisers and brands to adjust their ad spending. On Thursday, Snap reported disappointing second-quarter results and said it plans to slow hiring due to weaker revenue growth, sending its shares down 25% in after-hours trading.

Given Musk’s unplanned acquisition, Twitter said it would not provide forward-looking guidance for the third quarter. Nor is holding a conference call with analysts to discuss earnings results.

Costs and expenses for the quarter were up 31% year-over-year to $1.52 billion. The company turned around a loss of 8 cents a share, reporting its first adjusted loss in two years and the second in its history.

The official profile of Elon Musk on the Twitter social network.

Rafael Enrique | Lightrocket | Getty Images

Twitter (TWTR) Q2 2022 Earnings

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