Twitter reports user bump, loss of revenue for the first quarter, days after accepting Musk’s takeover offer 2022-04-28 05:33:23

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Musk was supposed to be appointed to Twitter’s board of directors on Saturday, but the world’s richest man told the company that day that he would not, in fact, take a board seat.

Andrew Burton | Getty Images News | Getty Images

Twitter merely Earnings reported for the first quarter of 2022in what could be one of its last reports as a public company after its board of directors approved the sale to Elon Musk for $44 billion.

Here are the key numbers:

  • Earnings per share: Adjusted 4 cents versus expected 3 cents, according to a Refinitiv survey of analysts.
  • Revenues: $1.2 billion versus the $1.23 billion forecast, according to Refinitiv
  • Monetized Daily Active Users (mDAUs): 229 million versus 226.9 million expected, according to StreetAccount

Twitter shares initially rose after the report but fell slightly later Thursday morning.

According to Refinitiv, Twitter missed analyst revenue estimates, reporting 1.2 billion versus 1.23 billion analysts were expecting. But it beat earnings per share estimates, at 4 cents, revised down from the expected 3 cents.

The company said the 229 million mDAU reported in the quarter represented a 15.9% increase over the same period last year. In the United States, disease control and prevention units increased 6.4% from the prior-year quarter, at 39.6 million. The number of international MDAUs reached 189.4 million, up 18.1% from the previous year.

It also corrected previously reported mDAU numbers that exceeded some accounts from the first quarter of 2019 through the fourth quarter of 2021. Twitter said the error, which incorrectly reported approximately 1.4 million to 1.9 million additional MDAUs each quarter During that period, a feature was launched that allows users to easily switch between their separate accounts. As a result, the company said that during that period, all linked accounts counted as mDAU when action was taken by the underlying account.

Before the deal was officially announced on Monday, Some analysts have speculated That Twitter may have wanted to close the deal before reporting earnings this weak, anticipating a disappointing quarter.

Explode, Explode It reported last week that its revenue has been affected by the macroeconomic trends burdening advertisers, which could similarly affect Twitter.

Although Musk’s deal could take months to shut down his Twitter account, the company called off its usual earnings conference call in light of Monday’s acquisition news. It expects the deal to expire this year.

Twitter also said it would not provide forward-looking guidance and was backing away from previous goals and expectations it had made.

Musk has indicated his desire to use his ownership to make Twitter a more open platform, both by being transparent in its algorithms and processes and by being more tolerant of different viewpoints.

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