The service reaches almost 238 million people with advertising.
(Photo: dpa)
san francisco In the midst of billionaire Elon Musk’s takeover attempt, Twitter has presented weak business figures. Revenues fell 1% year over year to $1.18 billion. Analysts had expected a good 1.3 billion dollars.
Twitter CEO Parag Agrawal skipped the usual question and answer session with analysts to present the business figures. Instead, in a statement, he blamed the “uncertainty” surrounding Elon Musk’s takeover plans for the drop in sales, among other things.
Musk announced in April that he wanted to buy Twitter for around $44 billion. A few weeks later, he unilaterally declared the deal suspended and eventually backed out in early July. Twitter wants a ruling that will oblige Musk to complete the acquisition at the agreed price of $54.20 per share.
Overall, Twitter ended the second quarter with a loss of $270 million, down from almost $66 million a year earlier.
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Twitter management also said that the shrinking sales are partly due to challenges with its advertising business stemming from problems in the broader economy, such as concerns about a looming recession.
Drop in sales: Loss “not as bad as feared”
The number of daily active users that Twitter can reach with its advertising because they use the in-house app or the web version rose from 229 million to 237.8 million within three months. In the first quarter, the service gained a good 14 million users.
Wedbush Securities analyst Dan Ives said the Twitter numbers weren’t as bad as feared. “A comparison to Snap’s nightmare quarter shows that digital ad spend isn’t falling off a cliff as feared,” Ives said.
Twitter rival Snap’s stock market valuation plummeted more than 30 percent after the company announced a bigger loss and weaker-than-expected user growth.
With agency material.
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