Twitter’s first-quarter earnings report has arrived and the company which is on its way to transferring ownership to Elon Musk after accepting his $44 billion bid, missed revenue estimates from revenues for the quarter. Following its announcement, Twitter’s shares were up about 1 percent in premarket trading.
For the first quarter of 2022, Twitter reported earnings per share of 61 cents. Revenue for the quarter came in at $1.2 billion falling slightly below the estimate of $1.23 billion that analysts had forecasted for the quarter. Monetizable daily active users (mDAUs) came in at 229 million compared to an estimate of 226.9 million, according to StreetAccount.
This is most likely Twitter’s last earnings report as a public company. Elon Musk is set to take over ownership of the company after a bid of $44 billion. The bid which is subject to shareholders’ decision and regulatory approval is expected to be completed soon.
Twitter’s earnings of share of 61 cents could not be compared to analysts’ estimates because it included a profit from the sale of MoPub to AppLovin. Revenue for the quarter fell short of the estimates put forward for the quarter. Analysts expected $1.23 billion and the company reported $1.2 billion.
Monetizable daily active users (mDAUs) which came in at 229 million in the first quarter, were up 15.9 percent from a year ago. In the US, mDAUs were 39.6 million and were up 6.4 percent from a year ago. International mDAUs of 189.4 million saw a growth of 18.1 percent from a year ago.
Reports had it that Twitter would have reported its first-quarter earnings earlier but wanted to complete the deal with Elon Musk before issuing an earnings report. The company accepted Elon Musk’s bid of $44 million on Monday.
Twitter withdrew earlier goals and the outlook already issued said it will not be providing guidance. This may most likely be a result of an imminent change in ownership and maybe management.
Elon Musk’s acquisition of Twitter has been criticized by individuals, government representatives, and human rights groups. “Regardless of who owns Twitter, the company has human rights responsibilities to respect the rights of people around the world who rely on the platform. Changes to its policies, features, and algorithms, big and small, can have disproportionate and sometimes devastating impacts, including offline violence. Freedom of expression is not an absolute right, which is why Twitter needs to invest in efforts to keep its most vulnerable users safe on the platform,” Deborah Brown, a digital rights researcher and advocate at Human Rights Watch, wrote in an email to Reuters.
Jack Dorsey has, irrespective of varying opinions, endorsed Elon Musk’s bid. Elon Musk is the “singular solution I trust” to run Twitter. “I trust his mission to extend the light of consciousness,” he said.
In principle, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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