Twitter Inc (NYSE:TWTR) has reported disappointing second quarter results that the social-media company blamed on advertising industry headwinds associated with the macroenvironment and uncertainty around the pending $44 billion acquisition of the company by Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)) CEO Elon Musk.
Twitter’s revenue dipped to $1.18 billion during the quarter, down 1% year-over-year from $1.19 billion in 2Q 2021, and below the average Wall Street analyst estimate of $1.32 billion.
The company posted a net loss of $270 million or diluted losses per share of $0.35, compared to a net income of $66 million or diluted earnings per share of $0.08 for the same period last year.
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Twitter also reported a 31% year-over-year increase in costs to $1.52 billion, with costs related to the pending acquisition of the company coming in at approximately $33 million.
On a positive note, the number of Twitter’s monetizable average daily active users increased to 237.8 million from 229 million in the first quarter and 206 million a year ago. The company said this increase was driven by ongoing product improvements and global conversation around current events.
Twitter said it would not be hosting an earnings conference call, issuing a shareholder letter, or providing financial guidance in conjunction with its 2Q earnings release due to the pending acquisition of the company by Musk.
Following the release of its earnings, at 10.30am on Friday Twitter was down about 0.5% to $39.30 per share.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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