July 22, 2022
Twitter reported financial results for its second quarter 2022. The firm lost 8 cents per share with earnings of 14 cents expected. On the top line, revenue was $1.18 billion with $1.32 billion sought be investors. Monetizable Daily Active Users (mDAUs) came in at 237.8 million with 238.08 million expected.
Twitter sad about the Elon Musk Transaction, "As announced on
April 25, 2022, we entered into a merger agreement, pursuant to
which Twitter agreed to be acquired by an entity wholly owned by
Elon Musk, for $54.20 per share in cash. Upon completion of the
transaction, Twitter will become a privately held company.
On July 8, 2022, representatives of Mr. Musk delivered a notice purporting to terminate the merger agreement. Twitter believes that Mr. Musk's purported termination is invalid and wrongful, and the merger agreement remains in effect. On July 12, 2022, Twitter commenced litigation against Mr. Musk and certain of his affiliates to cause them to specifically perform their obligations under the merger agreement and consummate the closing in accordance with the terms of the merger agreement. On July 19, 2022, Twitter's request for an expedited trial was granted, and the trial is being scheduled for October 2022.
Adoption of the merger agreement by our stockholders is the only remaining approval or regulatory condition to completing the merger under the merger agreement. The exact timing of completion of the merger, if at all, cannot be predicted because the merger is subject to ongoing litigation, adoption of the merger agreement by our stockholders and the satisfaction of the remaining closing conditions."
- Q2 average
monetizable daily active usage (mDAU) was 237.8
million, up 16.6% compared to Q2 of the prior
year. The increase was driven by ongoing product
improvements and global conversation around
- Average US mDAU was 41.5 million for Q2, up 14.7% compared to Q2 of the prior year.
international mDAU was 196.3 million for Q2,
up 17.0% compared to Q2 of the prior year.
- Q2 revenue
totaled $1.18 billion,
a decrease of 1% year-over-year, or an increase
of 2% on a constant currency basis, reflecting
advertising industry headwinds associated with
the macroenvironment as well as uncertainty
related to the pending acquisition of Twitter by
an affiliate of Elon
Musk. When excluding MoPub and MoPub
Acquire, year-over-year growth was 3%.1
- Advertising revenue totaled $1.08 billion, an increase of 2%, or 6% on a constant currency basis.
and other revenue totaled
a decrease of 27% year-over-year, or an
increase of 7% year-over-year when excluding
MoPub from the year ago period.1
- Costs and
expenses totaled $1.52
billion, an increase of 31%
- Costs related to the pending acquisition of Twitter were approximately $33 million in Q2.
Severance-related costs were approximately
$19 million in
was $344 million,
representing a -29% operating margin, compared
to operating income of
$30 million or 3% operating margin in the
same period last year.
- Net loss was
representing a net margin of -23% and diluted
EPS of -$0.35.
This compares to net income of
$66 million, a net
margin of 6% and diluted EPS of
$0.08 in the same
period last year.
- Net cash provided by operating activities in the quarter was $30 million, compared to $382 million in the same period last year. Capital expenditures totaled $154 million, compared to $276 million in the same period last year.