Twitter’s ad revenue up 23% in Q1 2022 financial results

Twitter reported revenue of US$1.2 billion (A$1.69 billion) for the first three months of 2022, up 16% from the first quarter of 2021. This could be one of its final quarters as a publicly traded company.

Advertising revenue totalled US$1.11 billion (A$1.56 billion), an increase of 23%, or 26% on a constant currency basis. See Twitter’s Q4 2021 results here.

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MoPub is a mobile ad network that helps apps and publishers fill their ad inventory through real-time bidding auctions.

Costs and expenses totaled US$1.33 billion (A$1.87 billion), an increase of 35% year-over-year. This resulted in an operating loss of US$128 million (A$180.29 million) and -11% operating margin, compared to an operating income of US$52 million (A$73.24 million) or 5% operating margin in the same period of the previous year.

Stock-based compensation (SBC) expense grew 60% year-over-year to US$177 million (A$249.30 million) and was approximately 15% of total revenue.

Net income was US$513 million (A$722.56 million), representing a net margin of 43% and diluted EPS of $0.61.

Net income includes a pre-tax gain of US$970 million (A$1.366 billion) from the sale of MoPub for US$1.05 billion (A$1.48 billion) and income taxes related to the gain of US$331 million (A$466.21 million). This compares to net income of US$68 million (A$95.78 million), a net margin of 7% and diluted EPS of US$0.08 (A$0.11) in the same period of the previous year.

Average monetisable daily active usage (mDAU) was 229 million for Q1, up 15.9% compared to Q1 of the prior year.

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As announced on 25 April, Twitter entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for US$54.20 (A$76.34) per share in cash. Upon completion of the transaction, Twitter will become 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 this year, has been approved by the board of directors of Twitter.

The Australian Financial Review reported that Twitter has written to agencies in response to the announcement of its $US44 billion ($62 billion) deal with Elon Musk, assuring them that their ads won’t be placed with harmful or offensive content.

What will Elon Musk’s ownership of Twitter mean for ‘free speech’ on the platform?

Twitter shares closed at US$49.11 (A$69.17) overnight, and has a market capitalisation of US$37.499 billion (A$52.82 billion).

Twitter’s takeover was discussed on a recent episode of the Mumbrellacast, listen below:


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