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Highlights:
- Twitter Inc. (NYSE:TWTR) posted Q2 FY22 revenue of US$1.18 billion on Friday.
- Twitter, in its latest financial results, has pointed at this feud for the fall in quarterly revenue.
Stocks of Twitter Inc. (NYSE:TWTR) began trending hot on the stock markets on Friday, July 22, after it posted its second-quarter FY-22 earnings. The social media giant reported total revenue of US$1.18 billion for the quarter, down one per cent drop year-over-year.
The earnings results have come at a time when the social networking company is in a tussle with Tesla chief Elon Musk over the now-abandoned US$44 billion acquisition deal. Twitter, in its latest financial results, has pointed at this feud for the fall in quarterly revenue.
Twitter has sued Mr Musk for dropping the buyout deal and is said to be preparing for the legal battle.
TWTR advertising revenue rose two per cent
Twitter said that its subscription and other revenue stood at US$101 million in Q2 FY22, down 27 per cent year-over-year (YoY) basis. Its total revenue from the advertising segment was US$1.08 billion, up by two per cent YoY.
The San Francisco-based company said that it saw a net loss of US$270 million or 35 cents a share in Q2 FY22 against a net income of US$66 million in the same quarter in 2021.
Twitter said its net cash from operating activities in the reported quarter was US$30 million. It was US$382 million in the same quarter a year ago.
Its capital expenditures came in at US$154 million, versus US$276 million in the year-ago quarter.
Twitter’s costs and expenses soared 31 per cent YoY while its expenditures came to approximately US$33 million during the quarter. It reported severance-related expenses of US$19 million in Q2.
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Twitter's (NYSE:TWTR) stock performance
Twitter shares were trading in the red during premarket hours on Friday, but they floated back to the green territory after the opening bell. At 1.58 AM EST on Friday, TWTR stocks were trading at US$ 39.64.
Bottom line
Twitter is said to have signed a now-defunct merger agreement with Elon Musk to be acquired for US$54.20 per share in cash. Upon completion, the deal was that Twitter would reportedly become a privately held entity.
The tussle between Mr Musk and Twitter began over bot and spam accounts on the social media platform. While Twitter reportedly maintained that these represent less than five per cent of its total users, Elon Musk eventually terminated the buyout deal after string of exchanges.
