Twitter Adds 9 Million Customers, Posts Lower Revenue Result Amid Musk Takeover Fiasco
Amid ongoing uncertainty across the Elon Musk acquisition, Twitter has shared its (*9*), posting a rise in lively customers, however a year-on-year lower in income, which it’s attributed to difficult market situations.
Although it’s additionally made it very clear that Musk himself is accountable for a lot of of its present challenges and issues.
First off, on customers, Twitter added 9 million new day by day lively customers within the quarter, taking it to 238 million whole mDAU.
As you’ll be able to see right here, a lot of the new progress has come from worldwide markets, with Twitter solely including 2 million new customers within the US. Besides, Twitter’s added 5 million extra US customers over the previous three quarters, after progress amongst American customers stagnated, and even declined at one stage, for nearly two years.
What’s notably shocking right here is that Twitter didn’t see any vital enhance in US consumer numbers through the Trump administration, when former President Trump used the platform as a key coverage announcement automobile. You’ll suppose that Twitter would have seen much more US customers leaping in to catch Trump’s tweets – however truly, since Twitter banned Trump in January 2021, its US consumer counts have elevated.
Make of that what you’ll.
By way of its ‘remainder of the World’ stats, Twitter hasn’t offered a breakdown of the place its latest 7 million customers have come from, however Japan and India stay its second and third largest consumer bases, after the US.
A priority on this entrance is that Twitter continues to butt heads with the Indian Government over the Authorities’s push to censor sure discussions and folks based mostly on politically delicate matters. Twitter has complied with a few of these orders, and resisted others.
The corporate’s ongoing pushback may nonetheless see Twitter face a possible ban within the Indian market – and if Twitter have been to lose India, as TikTok did, that may very well be a serious blow to its total growth.
Twitter attributes its total mDAU progress to ‘ongoing product enhancements and international dialog round present occasions’. After all, there’s no method of realizing for positive which components have had probably the most impression on this respect, however Twitter has continued so as to add new dialog controls, subscription choices, Communities, Areas, and so on.
Together, all of those components do seem like drawing extra customers to the platform. Not in an enormous method, however Twitter continues to be rising, which is a crucial consideration.
By way of income, Twitter introduced in $1.18 billion in Q2, a lower of 1% year-over-year.
Twitter says that the decline displays ‘promoting trade headwinds related to the macroenvironment’, which is all companies are feeling proper now, and you may anticipate to see each social platform to report comparable impacts over the remainder of the yr.
However as famous, Twitter additionally attributes its points to Musk himself, citing ‘uncertainty associated to the pending acquisition of Twitter by an affiliate of Elon Musk’ as one other consider its diminished income efficiency.
It’s unimaginable to measure the impression right here, however undoubtedly, the fixed disparagement by Musk, and the questioning of its metrics, would have had some impression on its market notion.
In its latest overview of its newly launched legal action to pressure Musk to uphold his finish of the deal, Twitter’s authorized group famous that:
“Financial damages [in the event of Musk exiting the deal], even when obtainable, wouldn’t be an satisfactory treatment within the occasion that the events don’t carry out the provisions of this Settlement.”
In different phrases, Musk’s public criticisms of the corporate have prompted harm past what Twitter thinks might be mounted with a payout or monetary settlement. Twitter is worse off due to the Musk fiasco, which has largely centered round Musk’s repeated declare that Twitter is mendacity in regards to the quantity of bots and spam accounts which are lively inside its community.
Which, even in right this moment’s announcement, Twitter nonetheless pegs at 5% of its lively consumer account.
Now a courtroom should determine whether or not Twitter’s disclosures on this factor are appropriate – or certainly, if it’s even related within the authorized case that Musk’s group is presenting to exit the deal.
Twitter additionally notes that its prices and bills in Q2 have been $1.52 billion, a rise of 31% year-over-year, with prices associated to the pending acquisition of Twitter reaching $33 million within the interval.
Severance-related prices have been roughly $19 million – whereas Twitter additionally lately famous that worker attrition has ‘been on the upswing for the reason that signing of the merger settlement’.
It’s a reasonably sombre announcement from Twitter, with the Musk deal successfully halting the corporate’s progress plans and projections, as a result of nobody has any concept who’s going to be in cost right now subsequent yr. Twitter continues to be rolling out updates and modifications, it’s nonetheless transferring forward with its current plans. But it surely feels prefer it’s, extra broadly, in a state of limbo until the Musk situation will get sorted.
Which may go any method. As of proper now, it looks as if Twitter has a stronger authorized case to carry Musk to the unique deal, however Musk has nearly limitless assets, and an enormous public profile, which is able to little question assist him put collectively one of the best authorized case to capitalize on any loophole or situation.
That might nonetheless see Musk wriggle out of the deal. And if that occurs, Twitter may very well be in a really tough spot transferring ahead.