Twitter announced their 2nd quarter financial figures on Friday 22nd July 2022 revealing a drastic drop in projected numbers of revenue, earnings and user growth. The social media platform partly blamed Tesla CEO Elon Musk for the figures citing his withdrawal from their acquisition deal as a key reason for the abysmal figures.

Analysts had estimated an expected revenue of $1.32 Billion but the figures released in Twitter’s announcement fell short of that valuation. The announcement revealed that Twitter’s revenue has decreased by 1% over the past year to $1.18 Billion. Last quarter, operational costs and expenses totaled $1.5 Billion last quarter with $33 Million of that amount hinging on the platform’s failed acquisition.

 The number of monetizable daily active users grew to 237.8 million although that still fell short of the estimated number of 238.08 Million. It was not all losses as advertising revenue — which forms a huge percentage of Twitter revenue — was up by 2%. The company reported a total net loss of $270 Million.

Twitter claimed in the announcement that the main factors behind the huge losses were “advertising industry headwinds associated with the macroenvironment” and “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.” Elon Musk is now locked in a legal tussle due to his decision to withdraw from his agreement to purchase Twitter for $44 Billion back in April.

 Musk stated that the rationale behind his decision is that Twitter failed to provide useful information on the prevalence of spam bots on the platform but Twitter believes that Elon’s claims hold no water. Over the weekend of Musk’s announcement to withdraw from the purchase agreement, Twitter shares fell below Musk’s buyout offer of $54.20 per share.

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