Twitter's user base surges after accepting Musk's acquisition offer! Q1 revenue falls short of expectations

It is learned that Twitter announced that its revenue for the first quarter of 2022 fell short of expectations. Twitter's stock price rose 1% on Thursday. This may also be its last financial report as a listed company. Previously, Twitter's board of directors agreed to sell Twitter to the world's richest man Musk for US$44 billion. The following is a summary of the financial report:

• Revenue was $1.2 billion, up 16% year-over-year, but below the expected $1.23 billion.
• Advertising revenue totaled $1.11 billion, up 23% year-over-year;
• Subscription revenue and other revenue totaled $94 million, down 31% year-over-year;
• Loss of $128 million, a loss margin of 11%, compared with a gross profit of $52 million, a gross profit margin of 5%, in the same period last year;
• Net income was $513 million, with a net profit margin of 43% and diluted earnings per share of $0.61.
• Net income of $513 million included a pre-tax gain of $970 million from the sale of MoPub for $1.05 billion and income taxes of $331 million related to the gain. This compares to net income of $68 million in the same period last year, a net profit margin of 7%, and diluted earnings per share of $0.08;
• The average daily active users were 229 million, up 15.9% year-on-year, higher than the expected 226.9 million;
• The average daily active users in the U.S. market were 39.6 million, a year-on-year increase of 6.4%;
• The average daily number of active users in the international market was 189.4 million, an increase of 18.1% year-on-year.

It is learned that although Musk's acquisition of Twitter may take several months to complete, Twitter canceled its usual earnings call in light of the acquisition news on Monday. It also stated that Musk is about to acquire Twitter, and Twitter will not provide any forward-looking forecasts and withdraw all previously provided goals and prospects. Musk expressed the hope to make Twitter a more open platform, with both transparency through algorithms and processes and more free voices.

Editor ✎Estella/

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