Science

Twitter disappoints in Q2 discussing impact of Musk case

Twitter recorded results in the second quarter that were well below expectations, which the social network said was a disappointment due to the unfavorable context, in particular the uncertainty surrounding its potential takeover by Elon Musk.

According to a press release published on Friday, the turnover of the group, which is trying to force the entrepreneur to fulfill its obligations in court, fell (-1%) to $1.18 billion over the year. This decline is attributed to “headwinds” in the advertising sector, concerns affecting the economic situation, as well as “uncertainty associated with the ongoing acquisition of Twitter” by Elon Musk. The number of so-called “monetizable” daily active users, i.e. those who may be exposed to advertising on the platform, increased by 8.8 million, less than analysts had expected, to 237.8 million.

With credit tightening and the economic downturn, companies based entirely on advertising are suffering from shrinking advertising budgets. In the second quarter, the group posted a loss of $270 million, while it made a profit in the same period of 2021.

According to a press release published on Friday, the turnover of the group, which is trying to force the entrepreneur to fulfill its obligations in court, fell (-1%) to $1.18 billion over the year. This decline is attributed to “headwinds” in the advertising sector, concerns affecting the economic situation, as well as “uncertainty associated with the ongoing acquisition of Twitter” by Elon Musk. The number of so-called “monetizable” daily active users, i.e. those who may be exposed to advertising on the platform, increased by 8.8 million, less than analysts expected, to 237.8 million. Amid tightening credit conditions and the economic downturn companies whose model is completely based on advertising are suffering from reductions in advertising budgets. In the second quarter, the group posted a loss of $270 million, while it made a profit in the same period of 2021.

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