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Thursday, September 29, 2022
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Twitter Reports Increase In Profits and Users

Business

Business man in suit at a laptop with various symbols and graphs depicting business strategy. | Image from Getty Images

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Twitter’s first-quarter report shows an increase in quarterly profit, revenue, and the number of daily users on its platform; however, the outlook is on shaky ground with Elon Musk expected to take the company private with the deal to close this year.

Twitter canceled a conference call with industry analysts and executives usually scheduled after the release of quarterly reports in anticipation of Musk’s takeover.

“Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward-looking guidance and are withdrawing all previously provided goals and outlook,” the company said.

On Thursday, April 28, Twitter reported a net income of $513 million, or 61 cents a share. According to YahooNews, those numbers stem from a significant one-time gain from the sale of its MoPub business, distorting comparisons of last year’s numbers.

Twitter saw a slight rise in revenue from ads. The report shows $1.2 billion within the first quarter, a 16% increase compared to the same period in 2021. The company reported the figure is due to  “headwinds associated with the war in Ukraine,” without elaborating.

At the end of the quarter, Twitter had a monetizable daily active usage (mDAU) of 229 million, more than the expected 226.9 million mDAU for the first quarter. This is a significant change from the 217 million mDAU figure from Q4. When it comes to mDAU, it went up 15.9%.

Before Musk’s acquisition, the company set an ambitious goal of 315 million mDAU and doubling revenue by 2023. However, with each disappointing quarterly report, such goals seem less likely.

Earlier this week, it was announced Musk would acquire Twitter for $44 billion. Before the deal is complete, shareholders will weigh in, and regulators in the United States and other countries where Twitter operates. No opposition is expected, but people are worried about Musk’s free speech stance and the platform being a place for harassment and hate speech.

“Do not allow Twitter to become a petri dish for hate speech, misinformation, or disinformation. Protecting our democracy is of utmost importance,” tweeted Derrick Johnson, president of the NAACP.

Twitter has not been able to make money as a public company consistently. Its revenue growth has not been as strong as Google and Facebook, the two most essential companies in digital advertising.

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