Twitter reports first-quarter revenue of $1.2bn days after agreeing to Musk buyout | Business News


Twitter has reported first-quarter revenue of $1.2bn (£970m), just days after agreeing to a $44bn (£35bn) sale to Tesla billionaire Elon Musk.

The amount was slightly below analysts’ average estimate of $1.23bn (£990m), according to IBES data from Refinitiv, while net income was $513.3m (£412m) – up from $68m (£54m) a year earlier.

Also during the first quarter, which ended on 31 March, the number of daily users grew to 229 million – a 16% rise.

Mr Musk offered to buy Twitter earlier this month, vowing to make it a haven for free speech, reduce its reliance on advertising, and deal with the proliferation of spam-distributing bots.

While Twitter’s board has given its approval to the deal, the reaction from Twitter users has been mixed.

Musk, who also runs the electric car company Tesla, as well as SpaceX and other ventures, has said he wants to take Twitter private.

This would mean the company would no longer be beholden to shareholders.

It would also no longer have to publish financial results.

Elon Musk has a roughly 9% stake in Twitter
Musk runs the electric car company Tesla, as well as SpaceX and other ventures

No forward-looking guidance from Twitter

When a large company reports financial results, it usually gives guidance as to how well it expects to do in the coming months.

But Twitter said in its results on Thursday: “Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward-looking guidance, and are withdrawing all previously provided goals and outlook.”

It said that it expected the deal with Mr Musk to be concluded by the end of this year, although this is subject to various conditions, including the approval of shareholders and regulators.

It also cancelled its post-results conference call “in light of the proposed transaction with Mr Musk, as is customary during the pendency of an acquisition”.

The San Francisco-based company’s shares rose 0.12% in early US trading.


Source link