Skip to main content

Twitter blames Elon Musk for making it lose money

Twitter blames Elon Musk for making it lose money

/

Musk is creating ‘uncertainty’ for advertisers

Share this story

Illustration by Alex Castro / The Verge

Twitter would have earned more money over the past few months if Elon Musk hadn’t been in the picture. At least, that’s what the company says in its Q2 earnings release this morning, citing Musk as a factor in its revenue results, which fell year over year to $1.18 billion from $1.19 billion.

That’s not the only reason Twitter is experiencing revenue problems. The company also cites ad industry problems — see Snap’s poor performance yesterday — and the general economic environment. But “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk” is the most Twitter-specific problem on the list.

Ad sales are reportedly in “disarray”

Musk entered into an agreement to buy Twitter in April, and he’s been trying to back out of it since just weeks afterward. Finally, Musk filed with the Securities and Exchange Commission in an attempt to formally end the deal earlier this month, and the two parties are now headed to court in October. Twitter hopes to make Musk follow through with the acquisition, which would come at a premium over the company’s current share price.

For the time being, though, the chaotic acquisition seems to be making it more difficult for Twitter to sell ads. Bloomberg previously reported that Twitter was trying its best to calm advertisers’ concerns about how Musk might change the platform, while Ad Age reported more recently that the drama has sent the company’s ad sales into “disarray.”

That all said, Twitter’s ad sales were still up 2 percent year over year, even if overall revenue was down. But the company needs to grow ad sales revenue a lot faster. Twitter reported a net loss of $270 million, down from a profit of $66 million during the same quarter last year. The revenue figure is a lot worse when looking at the growth trajectory. This time last year, Twitter’s revenue grew by 74 percent year over year. Now it’s shrinking.

One thing Twitter won’t give Musk credit for? Its user growth. The service reported reaching more than 237 million daily users, up from 229 million last quarter. That, of course, was due to “ongoing product improvements.”

Today’s Storystream

Feed refreshed 57 minutes ago Not just you

E
Twitter
Emma Roth57 minutes ago
Rihanna’s headlining the Super Bowl Halftime Show.

Apple Music’s set to sponsor the Halftime Show next February, and it’s starting out strong with a performance from Rihanna. I honestly can’t remember which company sponsored the Halftime Show before Pepsi, so it’ll be nice to see how Apple handles the show for Super Bowl LVII.


E
Twitter
Emma RothTwo hours ago
Starlink is growing.

The Elon Musk-owned satellite internet service, which covers all seven continents including Antarctica, has now made over 1 million user terminals. Musk has big plans for the service, which he hopes to expand to cruise ships, planes, and even school buses.

Musk recently said he’ll sidestep sanctions to activate the service in Iran, where the government put restrictions on communications due to mass protests. He followed through on his promise to bring Starlink to Ukraine at the start of Russia’s invasion, so we’ll have to wait and see if he manages to bring the service to Iran as well.


E
External Link
Emma Roth5:52 PM UTC
We might not get another Apple event this year.

While Apple was initially expected to hold an event to launch its rumored M2-equipped Macs and iPads in October, Bloomberg’s Mark Gurman predicts Apple will announce its new devices in a series of press releases, website updates, and media briefings instead.

I know that it probably takes a lot of work to put these polished events together, but if Apple does pass on it this year, I will kind of miss vibing to the livestream’s music and seeing all the new products get presented.


E
External Link
Emma RothSep 24
California Governor Gavin Newsom vetoes the state’s “BitLicense” law.

The bill, called the Digital Financial Assets Law, would establish a regulatory framework for companies that transact with cryptocurrency in the state, similar to New York’s BitLicense system. In a statement, Newsom says it’s “premature to lock a licensing structure” and that implementing such a program is a “costly undertaking:”

A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases, and is tailored with the proper tools to address trends and mitigate consumer harm.


Welcome to the new Verge

Revolutionizing the media with blog posts

Nilay PatelSep 13
A
Youtube
Andrew WebsterSep 24
Look at this Thing.

At its Tudum event today, Netflix showed off a new clip from the Tim Burton series Wednesday, which focused on a very important character: the sentient hand known as Thing. The full series starts streaming on November 23rd.


A
The Verge
Andrew WebsterSep 24
Get ready for some Netflix news.

At 1PM ET today Netflix is streaming its second annual Tudum event, where you can expect to hear news about and see trailers from its biggest franchises, including The Witcher and Bridgerton. I’ll be covering the event live alongside my colleague Charles Pulliam-Moore, and you can also watch along at the link below. There will be lots of expected names during the stream, but I have my fingers crossed for a new season of Hemlock Grove.


T
Twitter
Tom WarrenSep 23
Has the Windows 11 2022 Update made your gaming PC stutter?

Nvidia GPU owners have been complaining of stuttering and poor frame rates with the latest Windows 11 update, but thankfully there’s a fix. Nvidia has identified an issue with its GeForce Experience overlay and the Windows 11 2022 Update (22H2). A fix is available in beta from Nvidia’s website.


A
External Link
If you’re using crash detection on the iPhone 14, invest in a really good phone mount.

Motorcycle owner Douglas Sonders has a cautionary tale in Jalopnik today about the iPhone 14’s new crash detection feature. He was riding his LiveWire One motorcycle down the West Side Highway at about 60 mph when he hit a bump, causing his iPhone 14 Pro Max to fly off its handlebar mount. Soon after, his girlfriend and parents received text messages that he had been in a horrible accident, causing several hours of panic. The phone even called the police, all because it fell off the handlebars. All thanks to crash detection.

Riding a motorcycle is very dangerous, and the last thing anyone needs is to think their loved one was in a horrible crash when they weren’t. This is obviously an edge case, but it makes me wonder what other sort of false positives we see as more phones adopt this technology.