Twitter reports growth in revenue and users as Elon Musk prepares to take over.

SAN FRANCISCO – Just days before Elon Musk struck a deal to buy Twitter for $ 44 billion, he said he did not “care about the economics” of the company. As the world’s richest man, with a networth of over $ 250 billion, he suggested that making money from social media services was far from his main goal.

But on Thursday Mr. Musk was able to get a closer look at the strength of the business he was buying.

Twitter posted revenue of $ 1.2 billion for the first three months of the year, up 16 percent from a year earlier but lower than the company’s 20 percent growth rate for the year. The profit was 513 million, or about 61 cents per share. Wall Street analysts expected revenue of about 2 1.2 billion.

The social media company said it has 229 million daily active users, about 16 percent more than a year ago.

The results come as Mr. Musk is moving to finalize his deal for Twitter, which will take the next three to six months. Mr. Musk, 50, who also heads electric car maker Tesla and rocket company SpaceX, has vowed to privatize Twitter and make it a haven for “free speech.” In recent days, he has criticized some of Twitter’s top executives who helped shape the company’s policies on what should and shouldn’t be delivered on the platform, which caused a stir.

Even if Mr. Musk says he doesn’t care about Twitter’s business, investors will investigate the company’s finances to see how it could affect the deal. Investors will keep an eye on Twitter’s specific earnings metrics – its earnings before interest, taxes, depreciation and amortization, or EBITDA, widely used as a proxy for cash flow – to measure whether a company can pay off debt and interest. Musk’s deal will add to his balance sheet.

Mr. Musk is funding its acquisition of Tesla with સ્ટો 13 billion in debt financing against its stock and another $ 12.5 billion in loans to Twitter. It is expected to add about $ 21 billion to equity financing.

Twitter executives have been facing questions for years about the company’s business prospects, relying primarily on digital advertising. That business has been inconsistent. Twitter has not been able to make a profit for eight of the last 10 years. In 2020, activist investment firm Elliott Management took to Twitter and called for Jack Dorsey, one of its founders, to resign as chief executive. Mr. Dorsey resigned last year.

Jasmine Engberg, an analyst at Insider Intelligence, said: “While Twitter’s advertising growth has seen a recovery, its advertising business is significantly smaller than that of other large digital players.” “It also has a hard time attracting new users, which is integral to growing advertising revenue.”

First Mr. Musk was involved, and Twitter executives set out on an aggressive path for the company. It plans to rapidly reach 315 million active users in the next two years and reach આવ 7.5 billion in annual revenue by the end of 2023.

Mr. Musk’s acquisition could give Twitter the ability to modify its product as a private company, avoiding Wall Street scrutiny. Close observers of the company have long noted Twitter’s reluctance to improve its service due to user opposition and the sensitivity of advertisers to drastic changes.

But Mr. Musk can also throw the company into further turmoil. In addition, Mr. Targeting Twitter executives through the Musk service, some users have left the platform at the prospect of a Musk-led Twitter. Within the company, some employees have also expressed concern that Mr. Musk has a store for service.

In the company meeting on Monday, Shri. Agarwal acknowledged further uncertainty. “Once the deal is closed, we don’t know where the company will go,” he told Twitter.

Anupreeta Das Contribution Report.

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