Twitter reported revenue of $1.2 billion in the first quarter, up 16% from a year earlier, net profit of $513 million, compared with $68 million a year earlier, and Twitter admitted that it had been exaggerating its users for three years because of "mistakes." On April 26th Twitter announced that it would accept Musk's $44 billion offer. Although Mr Musk's acquisition of Twitter could be months away, the company cancelled the regular earnings call and said it would not provide forward-looking guidance and would withdraw its previously provided goals and prospects.
On Thursday, April 28th, US Eastern time, it announced not long ago that it would accept Musk's $44 billion acquisition offer.$Twitter (TWTR.US) $The company canceled the regular earnings call for the first quarter of 2022 after reporting revenue of $1.2 billion that fell short of market expectations and admitted that it had exaggerated user data for "wrong reasons" for three years. At the same time, Twitter said it would not provide forward-looking guidance and would withdraw its previously provided goals and prospects.
Specifically, the performance of its core financial indicators:
Revenue in the first quarter was $1.2 billion, slightly below market estimates of $1.23 billion, up 16% from a year earlier.
Advertising revenue in the first quarter was $1.11 billion, below market expectations of $1.12 billion, up 23 per cent from a year earlier, while subscription and other revenues were $94 million, down 31 per cent from a year earlier.
First-quarter net profit was $513 million, net profit margin was 43%, and diluted earnings per share were $0.61. In the same period last year, net profit was $68 million, with a net profit margin of 7%, or $.08 per diluted share.
Capital expenditure in the first quarter was $163.2 million, below market estimates of $185.4 million and $179 million in the same period last year.
From the perspective of user indicators:
In the first quarter, DAU (the number of monetized daily active users) was 220.9 million, up 15.9%. Among them, the average number of daily active users in the US market was 39.6 million, up 6.4% from the same period last year; and the average number of daily active users in the international market was 189.4 million, up 18.1% from the same period last year.
An earlier article on Wall Street combed out the problems that followed when Musk took Twitter, from leaders to boards to Twitter corporate governance, but never thought there were internal problems that "exaggerated" user data.
Twitter today revealed what it described as an "error" introduced in the first quarter of 2019, which "led to mDAU's overstatement", which went undetected in nearly three years. Twitter said that over the past year, the difference between the number reported by Twitter and the actual count was between 140and 1.9 million, or slightly less than 1 per cent of the total. But it does not provide adjustments to user data for most of 2019 or 2020.
In March 2019, when we introduced a feature that allowed people to link multiple separate accounts together to easily switch between accounts, there was an error so that actions taken through the primary account resulted in all linked accounts being counted as mDAU.
Twitter said after an internal review that fake or spam accounts accounted for "less than 5 per cent" of its mDAU in the quarter. Mr Musk has said he plans to crack down on "robots" or fake accounts after taking over.
It is also worth noting that although Twitter's advertising revenue increased by 23% year-on-year in this fiscal quarter, it did not meet Wall Street expectations, and judging from the warnings recently issued by Alphabet Inc-CL C and Snap Inc when they released their financial results, due to advertisers' concern about macroeconomic trends, their revenue is affected to a certain extent, and Twitter may face the same problem in the future.
As mentioned in an earlier article on Wall Street, the stock price performance on Tuesday, the day after the Twitter board announced the acquisition agreement with Musk, showed that investors in US stocks may be worried that Musk would sell his stake in Tesla, Inc. in order to complete the deal. Tesla, Inc. 's share price fell more than 12% on Tuesday, Musk's personal wealth fell by more than $32 billion a day, and another collapse of more than 10% would be in danger of insufficient financing margin for the acquisition of Twitter. Tesla, Inc. continued to fall in intraday trading on Tuesday, down nearly 4.5 per cent as of press time.
Twitter's earnings have skyrocketed in the past, but this time it was affected by Musk's acquisition, and the share price did not fluctuate much after the results were released. Although Twitter U.S. stocks rose about 1% before trading, but affected by the negative news, Twitter U.S. stocks fluctuated downwards after opening, narrowing gains to 0.19% temporarily reported at $48.73, lower than Musk's offer of $54.2 per share. Affected by Musk's acquisition since the beginning of the year, it has risen by 13%.
Edit / somer