Twitter has been front and centre in the headlines this week following Elon Musk’s deal to acquire the social media platform for $44 billion.
And it seems the social media giant has done well for itself so far, as noted in the 2022 first-quarter report – potentially one of its final reports as a publicly listed company.
Revenue totalled to AUD $1.69 billion (USD $1.20 billion), an increase of 16% year-over-year, or 19% on a constant currency basis.
Advertising revenue increased 23% and totalled A$1.56 billion (USD $1.1 billion) or 26% on a constant currency basis.
The report noted costs and expenses were AUD $1.87 billion (USD $1.33 billion) an increase of 35% year-over-year. This resulted in an operating loss of $128 million and -11% operating margin, compared to an operating income of $52 million or 5% operating margin in the same period of the previous year.
Net income was AUD $722.56 million (USD $513 million), representing a net margin of 43% and diluted earnings-per-share (EPS) of $0.61.
The AUD $722.56 million (USD $513 million) net income includes a pre-tax gain of AUD $1.366 billion (USD $970 million) from the sale of MoPub, mobile ad network assisting to fill ad inventory through bidding auctions, for AUD $1.48 billion (USD $1.05 billion) and income taxes related to the gain of $331 million.
In contrast to the net income of $68 million, a net margin of 7% and diluted EPS of $0.08 from the same period of the previous year.
The report also noted the average monetisable daily active usage (mDAU) on the platform was 229 million for this quarter, up 15.9% compared to the same period in 2021.
Unlike in the past where forward looking guidance is providing, given Musk’s pending acquisition of Twitter, the company withdrew from sharing goals and an outlook for the coming months, hosting a conference call, issuing a shareholder letter, or providing financial guidance along with its first quarter 2022 earnings release.
The report noted Twitter had entered “into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash” that, until the completion of the deal, would make the social media platform a privately held company.
“The transaction is subject to customary closing conditions and completion of regulatory review and Twitter’s stockholder approval. The transaction, which is expected to close in 2022, has been approved by the board of directors of Twitter,” the report said.
Read more: From Tesla to Tweets: Elon Musk buys Twitter for AUD $61.3 billion