Why Twitter accuses Elon Musk of causing it to go bankrupt.

Musk is giving marketers "uncertainty"

If Elon Musk wasn't involved, Twitter would have made more money over the previous few months. At least, that's what the business claims in its Q2 earnings announcement this morning, blaming Musk for its sales results, which decreased year over year to $1.18 billion from $1.19 billion.

Twitter is having issues with income for other reasons as well. The business also points to issues with the advertising sector, such as Snap's dismal performance yesterday, and the overall state of the economy. The most Twitter-specific issue on the list, though, is "uncertainty relating to the anticipated takeover of Twitter by an associate of Elon Musk."

In April, Musk agreed to acquire Twitter, and for a few short weeks afterward, he has been attempting to back out of the deal. The two parties will now go to court in October after Musk filed with the Securities and Exchange Commission earlier this month in an attempt to legally terminate the contract. Twitter wants Musk to go through with the acquisition, which would cost more than the stock price at the moment.

However, for the time being, the disorganized acquisition appears to be making it more challenging for Twitter to sell advertisements. Bloomberg earlier said that Twitter was making every effort to allay advertisers' fears about how Musk would alter the platform, but Ad Age recently claimed that the drama was still playing out.

Despite the fact that Twitter's overall income decreased, its ad revenues were still up 2 percent over the previous year. However, the business must increase ad sales income far more quickly. Twitter's net loss for the quarter was $270 million, compared to a profit of $66 million in the same period the previous year. When comparing the revenue amount to the growth trend, the situation is far worse. Twitter's income increased by 74% over this time last year. It's now getting smaller.

Twitter won't give Musk credit for one thing, though. user expansion More than 237 million users each day, up from 229 million over the previous quarter, was reached by the service. Of course, "ongoing product upgrades" were to blame for that.

Twitter's second-quarter results, which were released on Friday, fell short of analyst expectations in terms of profitability, sales, and user growth.

Twitter's stock dropped as much as 2% in pre-market trading.

These are the crucial figures:

The income per share: According to a Refinitiv poll of analysts, there was a loss of 8 cents adjusted vs projected earnings of 14 cents.

According to Refinitiv, revenue was $1.18 billion compared to $1.32 billion, and monetizable daily active users (mDAUs) were 237.8 million compared to 238.08 million predicted.

According to Twitter, revenue decreased 1% from the prior year to $1.18 billion. Wall Street had anticipated $1.32 billion, or an increase of 10.5% from the previous year. Refinitiv reported that Twitter's earnings were 11 percent behind expectations, which was the worst revenue shortfall in the company's history.

The business attributed a portion of the revenue decline to "uncertainty connected to the imminent acquisition of Twitter by an associate of Elon Musk" as well as "headwinds related to the ad sector relating to the broader tough macroeconomic climate."

Twitter and other social media firms that heavily rely on advertising have suffered the effects of macroeconomic problems as several advertisers and brands reduced their ad spending due to concerns about inflation, interest rates, supply chain problems, and the conflict in Ukraine. As a result of Snap's dismal second-quarter earnings and the announcement that it will restrict recruiting owing to sluggish revenue growth, its shares fell 25% in extended trading on Thursday.