The social network published disappointing quarterly results on Friday July 22. His economic model almost never allowed him to earn money.
by and
Bad news more for Twitter. Broken in its dispute with Elon Musk, the company presented disappointing quarterly results on Friday July 22. Despite an increasing number of active users, which now amounts to 237.8 million (+ 16 % in one year), its financial revenues are declined.
In the second quarter, social network income established $ 1.18 billion (1.15 billion euros), decreased 2 %, while spending has flown to 1.52 billion dollars (+ 31 %). The firm today displays a net loss of $ 270 million against a profit of 66 million at the same period in 2021.
To explain these poor performances, Twitter points to the shortfall linked to the resale of his Mopub management, but also the 33 million spent in the process – now hampered – of sale of the company at Elon Musk. While the two parties had heard on April 25 on an amount of $ 44 billion, the boss of Tesla decided to give up his offer on July 8.
the overwhelming majority of his activity is advertising
These results again throw raw light on its fundamental problem: the business model of the company almost never allowed him to earn money. It took her twelve years to display her first profits in 2018. She finished 2021 with $ 221 million in net loss (especially due to the cost of group action). With a turnover of $ 5 billion, Twitter has much lower income than a competitor like Meta (Facebook, Instagram).
The overwhelming majority of his activity is advertising. With $ 1.08 billion in the second quarter, the latter only increased by 2 % (compared to 22 % over the year 2021). The firm suffers in particular from the changes put in place by Apple at the end of 2020 in order to restrict the tracing of Internet users on iPhones, which hinders targeting and assessing advertisements. The macroeconomic context (war in Ukraine, inflation) also weighs on the expenses of advertisers.
Another problem: the social network has not found a viable growth relay. Its main track is Twitter Blue, a paid version of the application available for $ 2.99 per month in United States, as well as in Canada, Australia and New Zealand. It allows in particular to correct or cancel your tweets just after their publication, and to access certain articles without advertising, on partner media sites (Washington Post, USA Today, etc.). Apparently insufficient to seduce a large audience: during the quarter, “subscriptions and other income” fell from 27 % to only $ 101 million.
You have 40.15% of this article to read. The continuation is reserved for subscribers.