Twitter reported declining revenue and steep losses in the second quarter, citing the tough economic environment and its battles with Elon Musk.
The company reported $1.18 billion in revenue ― a 1 percent year-over year drop that falls short of Wall Street’s $1.32 billion expectation ― even as the number of daily active users swelled 16.6 percent to 237.8 million. It ran a net loss of $270 million.
In Friday’s earnings release, the company said its revenue decline reflected “advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”
The Tesla and SpaceX founder embarked on a takeover of the social media giant earlier this year only to feud with the company’s executives, pressure the company over the number of fake users on its platform, and back out of the deal. Twitter is now suing Musk to complete the acquisition.
The company reported $33 million in costs “related to the pending acquisition.”