Twitter’s earnings report for the first quarter of 2022 was recently released, and it fell short of expectations. The company also recognized that it had erroneously exaggerated its daily active users for numerous years.
Following Elon Musk’s successful bid to take Twitter private, the earnings report is expected to be the business’s final report as a public corporation.
Twitter has declared earnings for the first quarter of 2022, according to CNBC, despite Elon Musk’s successful effort to buy the company and take it private.
The following is a summary of the report from CNBC:
- Earnings per share: 61 cents, not comparable to estimates
- Revenue: $1.2 billion vs $1.23 billion expected, according to Refinitiv
- Monetizable Daily Active Users (mDAUs): 229 million vs 226.9 million expected, according to StreetAccount
Following the news, Twitter’s stock increased by almost 1%. Twitter’s revenue underperformed analyst expectations, coming in at 1.2 billion instead of the 1.23 billion predicted. In addition, the company recorded 61 cents in earnings per share.
The 229 million mDAUs provided by Twitter reflect a 15.9% increase over the same period the previous year. mDAUs increased by 6.4% compared to the same period last year, hitting 39.6 million, according to the business. At 189.4 million, international mDAUs were up 18.1%.
Between Q1 2019 and Q4 2021, Twitter additionally adjusted earlier mDAU numbers that overcounted accounts. Due to the implementation of a feature that allowed users to easily move between accounts, Twitter wrongly recorded 1.4 million to 1.9 million more mDAUs every quarter during that timeframe, according to Twitter.
When action was taken by the users’ main account, all associated accounts were tallied as mDAUs.
Twitter mentioned in its earnings report:
We launched a feature in March 2019 that allowed people to link multiple separate accounts together so they could switch between them more conveniently.
At that time, an error occurred, and all linked accounts were counted as mDAU as a result of acts conducted via the principal account.
From Q1’19 through Q4’21, mDAU was overstated as a result of this.
Despite the fact that Elon Musk’s purchase of Twitter is likely to take months to complete, the firm has canceled its planned earnings conference call in the wake of the revelation. Twitter is also ceasing to provide forward-looking guidance and rescinding previous goals and forecasts.