Latest News by Industry
• Twitter did not provide any forward-looking guidance and withdrew all previous forecasts, due to pending acquisition
• Revenue fell short of analysts’ estimates due to pause of selling ads in Russia and Ukraine
Twitter Inc (NYSE: TWTR) on Thursday reported a more substantial daily user growth in what could be the social media company’s last quarter as a publicly traded company. This is because Twitter agreed to a $44-billion buyout by billionaire Elon Musk.
Daily active users (DAU) rose to 229 million in the first quarter ended March 31, beating the market expectations of 226.8 million daily users.
However, revenue — the majority of which comes from selling digital ads — fell short of analysts’ estimates due to the Russia-Ukraine war, where the company stopped selling ads.
Twitter said it generated revenue of $1.2 billion in the first quarter, while Wall Street expected $1.23 billion.
The earnings laid out Musk’s challenges in improving the micro-blogging platform’s business to match its influence on news and culture.
Twitter has long faced criticism for its sluggish pace of product launches. Musk has earlier tweeted suggestions like adding a widely-demanded edit button to making the Twitter algorithm open-source.
Musk has also said Twitter should not serve advertising, which would allow the social media platform to have more control over its content policies.
Advertisers mostly prefer strong content moderation to better position their brand and avoid appearing next to unsuitable content.
Given the pending acquisition, the micro-blogging platform said it would not provide any forward-looking guidance and withdrew all previous forecasts.
Picture Credit: The Guardian
ALSO READ: