Twitter Cites Elon Musk, Economic Conditions As Q2 Numbers Fall Short

deadline.com:

Twittter swung to a loss in the June quarter and revenue was below Wall Street forecasts of Wall Street, blaming advertising industry headwinds and uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.It swung to a $270 million loss from a $66 million profit the year earlier.

Revenue of $1.18 billion was down 1% year-over-year (or up  2% on a constant currently basis that excludes foreign exchange fluctuations).And Twitter clocked 237.8 million MAUs, or monetizable daily active users, up 17% from last year’s quarter but lower than anticipated as the company prepares to enter the ring with Elon Musk.The June quarter numbers come two days after a judge set October for a five-day trail in a lawsuit the social media platform filed against the billionaire Tesla founder, who had agreed to buy it last spring but unilaterally terminated the deal early this month.“Given the pending acquisition of Twitter by an affiliate of Elon Musk, we will not host an earnings conference call, issue a shareholder letter, or provide financial guidance in conjunction with our second quarter 2022 earnings release,” said Twitter, so there won’t be any color around that.

It did include the boilerplate background on the transaction.“As announced on April 25, 2022, we entered into a merger agreement, pursuant to which Twitter agreed to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash.

Upon completion of thetransaction, Twitter will become a privately held company. On July 8, 2022, representatives of Mr. Musk delivered a notice purporting to terminate the merger agreement.