Saturday, 26 Jul 2025
America Age
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Font ResizerAa
America AgeAmerica Age
Search
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 America Age. All Rights Reserved.
America Age > Blog > Tech / Science > Twitter Reports Revenue Growth as Elon Musk Prepares to Take Over
Tech / Science

Twitter Reports Revenue Growth as Elon Musk Prepares to Take Over

Enspirers | Editorial Board
Share
Twitter Reports Revenue Growth as Elon Musk Prepares to Take Over
SHARE

SAN FRANCISCO — Days before Elon Musk struck a deal to buy Twitter for $44 billion, he said he did not “care about the economics” of the company. As the world’s richest man, with a net worth of more than $250 billion, he indicated that making money from the social media service was far from his prime objective.

But on Thursday, Mr. Musk was able to get an up-close look at the strength of the business he is buying.

Twitter reported that its revenue was $1.2 billion for the first three months of the year, up 16 percent from a year earlier but lower than a 20 percent growth rate the company had predicted for the year. Profit was $513 million, or about 61 cents per share. Wall Street analysts had expected about $1.2 billion in revenue.

The social media company said it had 229 million daily active users, up nearly 16 percent from a year earlier.

Mr. Musk’s deal for Twitter is expected to close in the next three to six months. Mr. Musk, 50, who also leads the electric carmaker Tesla and the rocket company SpaceX, has vowed to take Twitter private and make it a haven for “free speech.” In recent days, he has criticized some of Twitter’s top executives who helped build up the company’s policies on what speech should be allowed on the platform and what should not, causing an uproar.

From Opinion: Elon Musk’s Twitter

Commentary by Times Opinion writers and columnists on the billionaire’s $44 billion deal to buy Twitter.

But even if Mr. Musk says he does not care about Twitter’s business, investors will be scrutinizing the company’s financials to see how it may affect the deal. Investors will be looking at a particular earnings metric of Twitter’s — its earnings before interest, taxes, depreciation and amortization, or EBITDA, used widely as a proxy for cash flow — to gauge whether the company can pay off the debt and interest that Mr. Musk’s deal will add to its balance sheet.

Mr. Musk is funding his acquisition of Twitter with $13 billion in debt financing and $12.5 billion in loans against his stock in Tesla. He is expected to add about $21 billion in equity financing.

Twitter executives have faced questions over the years about the prospects for the company’s business, which relies primarily on digital advertising. That business has been inconsistent. Twitter has not turned a profit for eight of the last 10 years. In 2020, the activist investment firm Elliott Management took a stake in Twitter and called for Jack Dorsey, one of its founders, to resign as chief executive. Mr. Dorsey stepped down last year.

“While Twitter has had a rebound in ad growth, its ad business is significantly smaller than that of other major digital players,” said Jasmine Engberg, an analyst at Insider Intelligence. “It also continues to have trouble bringing in new users, which is integral to growing ad revenue.”

Before Mr. Musk became involved, Twitter’s executives set an aggressive trajectory for the company. The plan is for it to grow rapidly over the next two years, reaching 315 million daily active users and $7.5 billion in annual revenue by the end of 2023.

How Elon Musk Bought Twitter


Card 1 of 6

A blockbuster deal. Elon Musk, the world’s wealthiest man, capped what seemed an improbable attempt by the famously mercurial billionaire to buy Twitter for roughly $44 billion. Here’s how the deal unfolded:

The initial offer. Mr. Musk made an unsolicited bid worth more than $40 billion for the influential social network, saying that he wanted to make Twitter a private company and that he wanted people to be able to speak more freely on the service.

Twitter did not provide guidance for its future financial performance on Thursday.

Mr. Musk’s acquisition could give Twitter the ability to make changes to its product as a private company, avoiding the scrutiny of Wall Street. Close watchers of the company have long noted Twitter’s hesitance to overhaul its service because of protests from users and advertiser sensitivity to drastic changes.

But Mr. Musk may also throw the company into more turmoil. Apart from his targeting Twitter’s executive through the service, some users have left the platform over the prospect of a Musk-led Twitter. Inside the company, some employees have also expressed concerns as to what changes Mr. Musk has in store for the service.

In a company meeting on Monday, Parag Agrawal, the chief executive, acknowledged the uncertainty ahead. “Once the deal closes, we don’t know what direction this company will go in,” he told Twitter’s employees.

Anupreeta Das contributed reporting.

TAGGED:Agrawal, ParagAppointments and Executive ChangesCompany ReportsComputers and the InternetMusk, ElonOnline AdvertisingSocial MediaThe Washington MailTwitter
Share This Article
Twitter Email Copy Link Print
Previous Article Dua Lipa, 26, says reaction to her viral dancing video impacted her mental health: ‘Of course it got to me’ Dua Lipa, 26, says reaction to her viral dancing video impacted her mental health: ‘Of course it got to me’
Next Article The Owners of Grand Banks and Pilot Open Restaurant on Land The Owners of Grand Banks and Pilot Open Restaurant on Land

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
InstagramFollow
LinkedInFollow
MediumFollow
QuoraFollow
- Advertisement -
Ad image

Popular Posts

Kim Kardashian Says She Tried ‘Everything’ to Fit into Met Gala Dress: ‘I’m a Shapeshifter’

NEW YORK, NEW YORK - MAY 02: (Exclusive Coverage) Kim Kardashian attends The 2022 Met…

By Enspirers | Editorial Board

Police: More than 900 civilian bodies found in Kyiv region

KYIV, Ukraine (AP) — A senior U.S. defense official says the U.S. believes the Russian…

By Enspirers | Editorial Board

Australia dwell information: we have now to behave on cash laundering, Dreyfus to say; drug use on the rise throughout the nation

Key occasions720 new secure areas introduced for ladies and kids escaping violenceThe Albanese authorities has…

By Enspirers | Editorial Board

In YoYo Lander’s Dynamic Portraits, Layers of Stained Paper Seize Gentle and Shadow — Colossal

From individually stained snippets of watercolor paper, YoYo Lander collages elaborate portraits. Every work begins…

By Enspirers | Editorial Board

You Might Also Like

Robotic vacuums vs. stick vacuums: Purchasing recommendation from somebody who has each
Tech / Science

Robotic vacuums vs. stick vacuums: Purchasing recommendation from somebody who has each

By Enspirers | Editorial Board
Is Copilot’s new emoji-like avatar the brand new AI Clippy? Microsoft checks Copilot Look characteristic.
Tech / Science

Is Copilot’s new emoji-like avatar the brand new AI Clippy? Microsoft checks Copilot Look characteristic.

By Enspirers | Editorial Board
LELO simply launched an extremely stylish dual-ended wand vibrator
Tech / Science

LELO simply launched an extremely stylish dual-ended wand vibrator

By Enspirers | Editorial Board
Peacock simply obtained an enormous value hike, however there are nonetheless methods to avoid wasting
Tech / Science

Peacock simply obtained an enormous value hike, however there are nonetheless methods to avoid wasting

By Enspirers | Editorial Board
America Age
Facebook Twitter Youtube

About US


America Age: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Terms of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 America Age. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?