Twitter Results Suffer from Musk Uncertainty

Posted on July 22, 2022 by Paul Thurrott in Social with 18 Comments

Twitter usage grew 16.6 percent in Q2 2022, but the service suffered a slight revenue decrease thanks to uncertainty around the Elon Musk acquisition. Twitter reported a loss of $270 million on revenues of $1.18 billion, down 1 percent year-over-year (YOY). In the year-ago quarter, the service had a net income of $66 million.

Twitter declined to host an earnings conference call, issue a shareholder letter, or provide financial guidance due to “the pending acquisition of Twitter by an affiliate of Elon Musk.” But it did blame the poor financial showing on “advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”

That said, Twitter’s usage looks strong. The firm reported that it had 237.8 million monetizable daily active users (mDAUs) in the quarter, that is, users who saw ads, up 16.6 percent YOY. “The increase was driven by ongoing product improvements and global conversation around current events,” Twitter noted.

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Comments (18)

18 responses to “Twitter Results Suffer from Musk Uncertainty”

  1. lvthunder

    What? Do you (or anyone) honestly believe someone decided not to advertise on Twitter because of the sale? I don't.

    • wright_is

      Read the article again, Twitter never stated that. They said downturn in the advertising industry and the acquisition.

      • lvthunder

        and I'm saying the sale had nothing at all to do with it. No one didn't advertise on Twitter because it was going through a purchase.

    • Stabitha.Christie

      I think Twitter has a far better understanding of what is happening At Twitter than you do. What you choose to believe is largely inconsequential as it isn’t based on any kind of fact.

      • lvthunder

        Yeah because a corporation has never lied before.

        • Stabitha.Christie

          So your argument is that because operations have lied in the past you get to make whatever baseless claims you want and state them as fact? That is beyond ridiculous.

        • CasualAdventurer

          I think we can all agree that many advertisers avoid controversy, and Elon's bid for the company embroiled it in such. I'd also suggest that it exposed the enormous number of Bots on the platform. Perhaps advertisers concluded that Twitter was charging too much for its actual reach of humans? Due to both these factors, it could be said that the possible sale of the company did contribute to their financial downturn. Now I want you kids (@Ivthunder @Stabitha.Christie) to apologize to each other and hug it out.

      • Stabitha.Christie

        And somehow I got hit by the same issue as train wreck. The irony of a tech blog that can’t figure out technology is rich.

        • Paul Thurrott

          Sorry, why are we being mean to each other exactly? Come on.

          • Stabitha.Christie

            Paul, you have build your reputation, in part, on snarky comments and petty attacks. This very much a case of you being able to dish it out but no take it.

            • Markld

              I have to laugh at your comments about Paul. You're claims are petty. In many years of following Paul your words don't match was I have read or found out about Paul.

            • Paul Thurrott

              No, it isn't. And no I do not. I don't go after normal individuals. I go after companies, products, and, when warranted, public figures in our industry. I defend myself when I'm attacked, sure. I'm still a person. But just going after people and being mean is bullying. And small. Whether you're doing it to me or anyone else. Our world sucks enough as it is. There's no reason to add to the terribleness.
            • CasualAdventurer

              The truth is, personal attacks are a logical fallacy and detract from your argument. Stick to the facts and you will more than likely win the debate.

              • Paul Thurrott

                Personal attacks are what I was talking about. There's no need for it. If you stick to facts, there's no need to debate, let alone put someone down.
    • train_wreck

      How on earth do you draw that conclusion? They cite the “macroenvironment” of the ad industry which, like most every industry, is due to the general downturn in the national/global economy.

      • train_wreck

        Meant to reply to lvthunder, man this comment system is such an emesis nemesis

        • Paul Thurrott

          It's about to be completely replaced, thankfully. Literally getting ready to roll that out.
          • train_wreck

            Yes! Perhaps the next issue could be to fix the “remember me” login option which has consistently failed to remember me? Thanks for everything guys.