Twitter reported $513 million in quarterly profits only days after agreeing to be sold to billionaire Elon Musk. In the three months ending in March, the social media business reported a 16 percent increase in revenue to $1.2 billion, compared to the same time the previous year. Twitter, located in San Francisco, claimed an average of 229 million daily active users in the third quarter, up 14 million from the previous quarter’s corrected figure of 214.7 million.
Twitter has postponed its annual conference call with executives and industry experts, so there will be little further information about the company’s present financial situation. “We will not be giving any forward-looking information, and we are removing all previously disclosed objectives and expectations,” the business wrote, citing Elon Musk’s upcoming purchase of Twitter. Musk revealed his $44 billion purchase of Twitter earlier this week, and the transaction is likely to finalize later this year.
The acquisition of Twitter by Musk is likely to finalize later this year. However, shareholders, as well as authorities in the United States and other countries where Twitter conducts business, will have to weigh in before the acquisition is finalized. Despite complaints from some Twitter staff and users concerned about Musk’s attitude toward free speech and what it would imply for harassment and hate speech on the network, few roadblocks are foreseen thus far.
Musk, who is also the CEO of Tesla, SpaceX, and other businesses, has said that he intends to take Twitter private. If he succeeds, the firm would no longer be accountable to shareholders or have to publicly publish its financial outcomes, which have been mixed at best since its IPO in 2013.
In comparison to the two leading powers in digital advertising, Google and Facebook, Twitter has failed to record continuous profits as a public business while achieving weak revenue growth.
On the one hand, going private may allow Twitter to experiment more freely while concentrating less on short-term profit and stock price. Even the world’s wealthiest guy, on the other hand, is likely to want the firm to earn money. “I believe there is nothing better for Twitter than Elon Musk purchasing it and changing the board, as well as doubling down on investments in products and other revenue-generating streams,” said John Meyer, a technology entrepreneur, and investor, to The Associated Press earlier this week.