Twitter confirmed that the growth of the number of its users rose amid weak revenues, while its earnings reports as a publicly traded company are expected to be the last, before billionaire Elon Musk announces it as a private company..
Its daily active and monetizable user base, which is the company’s main reporting metric, grew 16% to 229 million during the quarter ending March 31, a period that ended just days before Musk revealed his 9% stake in the company. .
This disclosure led to Musk’s continued efforts to buy the company directly with a plan to get rid of its content modification policies, according to a report published on the “New York Post” website last Thursday..
Slow quarterly revenue
But Twitter did not live up to Wall Street expectations for first-quarter revenue, as it recorded $1.2 billion, compared to the $1.23 billion forecast by analysts..
The company attributed the shortfall in part to “headwinds associated with the war in Ukraine.”“.
Also, the 16% increase in quarterly revenue represented the slowest pace of growth on Twitter in more than a year, according to Bloomberg..
The social media platform canceled its scheduled phone call with analysts to discuss the results, a decision company officials described as “familiar during the acquisition period.”
It is noteworthy that Twitter’s board of directors approved Musk’s $44 billion purchase offer last week in a deal that is expected to be completed later this year..
Each side agreed to pay a $1 billion breakup fee if the deal failed under certain circumstances, such as Musk losing funding for the show or Twitter accepting another unsolicited third-party offer..
In turn, Twitter said in a press release that “the transaction is subject to the usual closing conditions, completion of regulatory review and approval of Twitter shareholders“.
An expected series of changes
The deal, which is expected to expire in 2022, has been approved by Twitter’s board of directors.”
In addition, the company refused to provide guidance on its upcoming financial results and withdrew its previous expectations, citing Musk’s acquisition of the company.