On Thursday, Twitter reported net income of $513 million, or 61 cents per share, despite a big one-time gain from the sale of its MoPub business, making year-over-year comparisons difficult.
Although Twitter’s quarterly profitability, revenues, and daily users are all rising, the company’s quarterly report, released just days after it agreed to be sold to billionaire Elon Musk, included little details on the company’s financial expectations for the rest of the year.
Revenue increased 16 percent to $1.2 billion in the three months to March from the same time last year, while the business attributed the increase to “headwinds associated with the war in Ukraine,” without providing any details.
In the third quarter, Twitter had an average of 229 million daily active users, up 14 million over the previous quarter’s revised figure of 214.7 million daily users.
The company in San Francisco has canceled a conference call with executives and industry analysts that usually precedes the release of its financial results, so there will be little new information about the company’s current financial situation.
The company in San Francisco has canceled a conference call with executives and industry experts that traditionally follows the release of its financial data, so there will be little further information about the company’s present financial situation.
“Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward-looking guidance, and are withdrawing all previously provided goals and outlook,” Twitter announced in one of its final quarterly releases as a public business before Musk buys it.
Elon Musk, who spent $54.20 for each outstanding share of Twitter, did not comment publicly on his new company’s quarterly report, which might be its final as a publicly listed firm.
Musk unveiled his $44 billion plan to purchase Twitter earlier this week, and it is likely to finalize later this year.
However, shareholders, as well as authorities in the United States and other countries where Twitter does business, will have to weigh in before the acquisition is finalized.
Despite complaints from some Twitter staff and users concerned about Musk’s attitude on free speech and what it would imply for harassment and hate speech on the network, few roadblocks are foreseen, thus far.
Elon Musk, who is also the CEO of Tesla, SpaceX, and other businesses, has stated that he intends to take Twitter private.
Assuming he succeeds, the firm would no longer be accountable to shareholders or have to publicly publish its financial outcomes, which have been mixed at best since its IPO in 2013.
In comparison to the two leading powers in digital advertising, Google and Facebook, Twitter has failed to record continuous profits as a public business while achieving unimpressive revenue growth.
On the one hand, going private may allow Twitter to experiment more freely while concentrating less on short-term profit and stock price.
Even the world’s richest guy, on the other hand, is likely to want the business to succeed.
John Meyer, a technology entrepreneur and investor, to The Associated Press earlier this week said “I think there is nothing better for Twitter than Elon Musk buying it and ideally replacing the board, and also doubling down on investments into products and new revenue-generating sources.”