LONDON (Washington Insider Magazine) – Twitter’s quarterly earnings, sales, and daily users are all increasing, but the company’s quarterly report, issued just days after consenting to be acquired by billionaire Elon Musk, included little specifics about its financial outlook for the remainder of the year.
According to ABC NEWS, the social media giant announced net income of $513 million, or 61 cents a share, on Thursday, but that included a large one-time profit from the sale of its MoPub operation, clouding comparisons with the year-ago period.
Revenue jumped 16 percent to $1.2 billion in the 3 months to March compared to the same time last year, owing to “headwinds associated with the war in Ukraine,” according to the organization, which did not elaborate.
In the third quarter, Twitter had an estimate of 229 million daily users, up 14 million over the preceding quarter’s revised figure of 214.7 million.
The corporation in San Francisco has postponed a conference call with industry experts and executives that traditionally precedes the release of its financial figures, so there will be little further information about the company’s present financial situation.
Musk, who is paying $54.20 per outstanding stock of Twitter, did not comment officially on the quarterly earnings report, which might be the company’s final as a public company.
Musk revealed his $44 billion purchase of Twitter earlier this week, and the deal is likely to finalize later this year. However, shareholders, as well as authorities in the United States and other nations where Twitter does operations, will have to step in before the acquisition is finalized. Despite complaints from some Twitter staff and users concerned about Musk’s position on free speech and what it would imply for hate speech and harassment on the site, few roadblocks are foreseen thus far.
The findings, together with a myriad of issues confronting the digital ad market, should confirm the board’s decision to support Musk’s bid, according to Angelo Zino, a CFRA tech analyst.
Twitter stocks have yet to hit the buyout price, as the stock gained marginally to $49.11 on Thursday.
According to Harry Kraemer, a former CEO and chairman of Baxter International who is now a professor at Northwestern University’s Kellogg School of Management, the difference between the current share price and the agreement price “seems to indicate that some investors remain uncertain about when and whether the deal will be completed.”
One source of uncertainty is the rarity of a person purchasing a multibillion-dollar corporation.
When a publicly listed company buys another, investors can look at the buyer’s financial declarations to determine if they have the funds to complete the transaction. If necessary, the buyer might also issue stocks to obtain finance.
Another problem is Musk’s proclivity for changing his mind, which has fueled suspicions that he may back out of the agreement, even if it means paying a $1 billion break-up fee.
Musk, who is also the CEO of Tesla, SpaceX, and other businesses, has stated that he intends to take Twitter private. If he succeeds, the organization would no longer be accountable to shareholders or have to publicly disclose its financial outcomes, which have been mixed at best since its IPO in 2013.
In comparison to the two leading powers in digital advertising, Facebook and Google, Twitter has failed to record continuous profits as a public business while experiencing sluggish revenue growth.
On the one hand, going private may allow Twitter to experiment more freely while concentrating less on short-term revenue and stock price. Even the world’s wealthiest man, on the other hand, is likely to want the corporation to earn money.
