Twitter says that the disappointing results on “headwinds” are due to the chaotic buyout bid by billionaire Elon Musk.
The social media giant is in a legal battle with the unpredictable CEO of Tesla over his plan to back out of a $44 billion deal to buy the platform. During the last quarter, the company’s sales fell unexpectedly and it made a net loss.
As credit gets harder to get and the economy gets shaky, many companies that rely heavily on ads, like Twitter, are seeing advertisers cut back on their budgets.
Twitter sued Musk because he dropped his offer to buy the company. A trial is set to start in October, and Twitter is now getting ready for a legal battle.
According to data from Refinitiv IBES, Wall Street had expected Twitter’s advertising income to rise to $1.22 billion, but it only went up 2% to $1.08 billion.
Twitter and Musk are fighting over bot and spam accounts, which the San Francisco-based company says made up less than 5% of users in the last quarter.
Musk has said that the number is much higher and has accused Twitter of hiding information because the number the company has given has been the same since 2013.
Due to Musk’s “pending acquisition,” Twitter said it would not send a letter to shareholders, hold an earnings call, or give financial advice.
During the quarter, Twitter spent $19 million on leaving employees. However, the Musk deal cost the company $33 million.
In May, the social networking site took back some job offers to new hires after CEO Parag Agrawal told the company to cut costs.