Popular social media platform Twitter reported a loss of revenue in the quarter ending June. The surprise loss of $270 million was reported, on Friday. The company cited that the uncertainty behind the deal with Tesla CEO Musk as a reason while advertisers’ cutting down on ads due to the current economic environment was also a cause for the loss.
The Friday quarterly report mentioned that the company earned $1.18 in revenue. This translates to a one percent year-over-year drop. It also falls below the estimation of Wall Street analysts which was pegged at $1.32 billion. The net loss was $270 million.
Twitter also said that the number of daily active users on the social media platform increased to 237.8 million which is a whooping 16.6 percent increase. The platform had also added users in the earlier quarter. It said that the numbers had jumped because of product improvements as well as a wide international interest in current events.
The social media company stated that the decline in revenue was due to “advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”
Elon Musk first spoke of acquiring Twitter in late April for $54.20 per share. This was higher than its current value by about 38 percent. However, the Tesla CEO kept dilly dallying on the deal and criticized the platform way too often considering that he was the one who went to the company’s board with an offer.
Early this month, Elon Musk said that he was breaking the deal with Twitter. The social media platform has brought a lawsuit against him. Despite Musk’s legal team’s effort to delay proceedings, a trial date has been set for October. The early trial date has been a part of the reason why Twitter stock has not fallen dramatically, despite the social media platform posting a loss; as other similar entities including Snap have also posted quarterly results that are below expectations.
