As of: 04/28/2022 7:21 p.m
Probably thanks to the increased need for information as a result of the Ukraine war, Twitter attracted significantly more active users in the first quarter. However, the user numbers reported for 2021 were too high.
Twitter had 229 million monthly active users in the first three months of this year. That is 16 percent more than in the same period last year. Experts had expected less. Apparently, Twitter benefited from the growing need for information as a result of the Ukraine war that broke out at the end of February.
However, the short message service had to admit for the second time that the latest information on the monthly number of users was wrong. Instead of the 217 million mentioned, in the fourth quarter of 2021 there were just under 215 million users who were actively using the short message service.
User numbers subsequently corrected downwards
The company, which is to be acquired by tech billionaire Elon Musk, subsequently revised its monthly user numbers slightly downwards from the beginning of 2019 to the end of 2021.
In 2017, Twitter had admitted a similar numerical error.
For some time now, the short message service has only mentioned the number of users who can be reached with ads. Those who access the service via apps from other providers are not counted.
16 percent more sales
Revenue for the first quarter of 2022 increased 16 percent year-on-year to $1.2 billion. Analysts had expected a little more. The bottom line was a profit of $513 million thanks to special proceeds of nearly $1 billion from the sale of advertising company MoPub. On the other hand, Twitter suffered a loss of around 123 million dollars in operational business.
In view of the ongoing takeover attempt by tech billionaire Musk, Twitter is no longer making any forecasts and has canceled all previous targets. By the end of 2023, Twitter originally wanted to have annual sales of $7.5 billion and 315 million daily users.
Doubts about the success of the Musk deal
Investors remain skeptical that Musk’s deal will succeed. The stock is currently a good $49, a far cry from the $54.20 Musk is offering per share. Twitter had resisted Musk’s takeover attack for a long time, but then accepted the offer.
In order for the Tesla boss to reach his goal, enough shareholders have to give him their shares. So far, the billionaire has held a good nine percent stake in Twitter. Should Musk or Twitter cancel the deal, the other party will be fined $1 billion.