It’s no secret that Twitter has had its hands tied with a pressing concern in the form of dealing with Elon Musk attempting to acquire the company and then backing out of the deal. In fact, Twitter believes that Musk-related issues contributed to an underwhelming finish to the quarter. The company just reported its Q2 2022 earnings results and came up short on revenue. Twitter blamed its revenue miss on “uncertainty” with the global economy and the ongoing matters with Elon Musk.
Twitter released its Q2 2022 earnings results on its investor relations website on July 22, 2022. According to the release, Twitter put up a reported revenue of around $1.18 billion USD. This fell short of expectations which, according to Earnings Whisper, were set at around $1.33 billion. Twitter put the blame for its shortcoming on the current troubled economy, its effect on online advertising, and its deal-turned-court-case with Elon Musk.
Twitter specifically claimed that its losses reflected “advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”
In addition to falling short on its revenue expectations, Twitter also net losses for its Q2 2022 at $270 million versus a net income of $66 million. Under company costs and expenses, Twitter reported that the Elon Musk deal had been responsible for about $33 million in costs so far. Furthermore, it attributed $19 million to severance-related costs.
Twitter (TWTR) stock took a dip following the release of its Q2 earnings results, dropping to a low of $38.90 per share before trending back upwards throughout the market’s opening hours. It is still currently down on the day, according to Yahoo Finance.
With Twitter going to court with Elon Musk and a court date set for October 2022, it’s likely going to get messier for both parties this coming season. Stay tuned for further financial reporting as quarters close and results are released by various tech companies.
TJ Denzer posted a new article, Twitter (TWTR) Q2 2022 earnings results blame revenue miss on Musk-related dealings
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