Twitter, on Thursday, announced its first-quarter results, days after the company agreed to be sold to the world's richest man Mr. Elon Musk.
The company's revenue reached a total of $1.2 billion, up 16% from the revenues figures last year, 19% on a constant currency basis. Advertising revenue was its largest contributor as it amounted to $1.1 billion, up 23% from last year. However, subscription and other revenues for the quarter were $94 million, down 31% YoY.
The company's costs and expenses for the quarter were $1.33 billion, up 35% YoY. This led to an operating loss of $128 million and an operating margin of -11%.
However, the company had a one-time gain of $970 million from the sale of its stake in MoPub. Due to this extraordinary gain, the company managed to have a net income of $513.3 million and a net margin of 43%. In the absence of this gain, the net loss would've been $141.8 million. The Basic EPS of the company for the quarter was $0.66.
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Their monetizable daily active usage grew 15.9% to 229 million, slightly above analysts' expectations. In the wake of this deal with Mr. Musk, the company canceled its quarterly earnings conference call.
Ever since the deal was announced, social media, Twitter, in particular, has been in an uproar. Mr. Musk publicly criticized the legal counsel of Twitter, Vijaya Gadde, on Twitter which sparked criticism. Moreover, people have openly vented on Twitter that this deal would place too much power in the hands of a single individual.
On the other hand, Elon Musk has several plans in mind to make Twitter "better than ever". He had previously suggested ideas like an Edit button, defeating spambots, and making the Twitter algorithm open source. He suggested other changes that would assist the company to improve its financial condition.
With the results announced yesterday and the Board of Twitter's willingness to sell the company, Mr. Musk's acquisition of Twitter might just help the company rise up out of its current predicament. The share currently trades at around $49 per share.
Article by Aman Agarwal.
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