Twitter spent $33m (£27m) on Elon Musk’s proposed deal to buy the firm between April and June 2022. It also said its monthly daily users had grown to 237 million – but it reported a net loss of $270m, worse than expected.
Mr Musk has since changed his mind about the purchase, and a court date has now been set for October as Twitter seeks to force the sale through.
There is potentially a $1bn termination fee at stake. Twitter declined to discuss its latest financial results, citing a “pending acquisition”. The report covers the period from April to June 2022.
Twitter has doubled its position on the amount of spam and fake accounts on the platform – the reason Elon Musk had given for terminating the deal.
“We have performed an internal review of a sample of accounts and estimate that the average of false or spam accounts during the second quarter of 2022 represented fewer than 5% of our [monthly active users] during the quarter,” it said – although it added that the figure was an estimate.
On Thursday, Snap, which owns Snapchat, reported revenue of $1.11bn for the three months to the end of June, which missed Wall Street’s expectations.
Its shares fell more than 25 per cent following the news. It said some of its advertisers had cut their spending in the face of rising costs.
It also said it was affected by a change made by Apple last year that meant iPhone and iPad users could opt-out of being tracked by apps. This has affected the personalization of ads – a unique service for tech firms – as they can no longer see their users’ other online activities and ads accordingly.
Twitter said its ad revenue grew just 2% to $1.08 billion.
Meta and Google’s parent company Alphabet will report its earnings next week.