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Elon Musk blamed for Twitter making less money despite more users

Twitter is blaming Tesla and SpaceX CEO Elon Musk for the company falling revenue despite an influx of new users to the platform.

Published Jul 25, 2022 3:18 AM CDT   |   Updated Tue, Aug 16 2022 7:11 AM CDT
1 minute & 37 seconds read time

Twitter has released its Q2 2022 earnings results, and despite growth in average monetizable daily active users (mDAUs), the company has blamed Elon Musk for its falling revenue.

Elon Musk blamed for Twitter making less money despite more users 01

Tesla and SpaceX CEO Elon Musk has been blamed for Twitter's reduction in revenue following his bid to purchase the world's second-largest social media platform for $44 billion and then his pull out of the deal. According to Twitter's Q2 2022 results found here, Twitter's revenue for its second quarter was $1.18 billion, but its expenses for the same time frame was $1.52 billion. The company reported net losses of $270 million, and of that $270 million, $33 million is related to the "pending acquisition" from Musk.

Notably, Twitter's Q2 2022 results indicate that the company has gained more mDAUs, with a growth of 16.6% compared to Q2 2021 - hitting 237.8 million globally. Twitter claims that its decline in revenue can be attributed to the uncertainty surrounding the company and the claims from Musk that more than 5% of its mDAUs are bot/spam accounts. These claims from Musk have resulted in Twitter being a less attractive prospect for advertisers, according to the company.

Furthermore, Twitter points to the general economic downturn throughout the advertising industry following Apple's rollout of consumer privacy features. As for Elon Musk's acquisition of Twitter, the Tesla CEO recently pulled out of the deal, sparking a lawsuit to be filed by Twitter with a Delaware court.

The suit requested the trial date be expedited to October 2022, which Musk's legal team requested to be thrown out, citing the amount of time needed to process Twitter's data that was given to them to prove the company had more bot/spam accounts than it was claiming (less than 5%).

If you are interested in reading more about Musk and his deal to purchase Twitter, check out the below links.

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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