Twitter Executives Admit Overstating The Number Of Users To Investors

( Twitter recently published its first-quarter earnings report which shows that the company has fallen short of some expectations. This earnings report is expected to be the last now that Elon Musk’s bid to take the company private has been accepted.

In its earnings report, Twitter also admitted that, due to an error, the company had overstated its daily active user numbers for every quarter from 2019 until 2021.

According to CNBC, Twitter projected a 3-cent jump in earnings per share during the first quarter of 2022. However, Twitter’s per-share earnings exceeded expectations slightly, increasing by 4 cents to 61 cents per share.

Total revenue was slightly below projected amounts, coming in at $1.2 billion rather than the $1.23 billion projected.

StreetAccount recorded 229 million monetizable daily active users, a 15.9 percent increase from the first quarter of 2021. This was slightly higher than the projected 226.9 million expected.

However, Twitter also corrected the monetizable daily active user counts between the first quarter of 2019 and the fourth quarter of 2021. In its report, Twitter stated that an error incorrectly overcounted users by between 1.4 million and 1.9 million per quarter during that time. It blamed the overcount on the introduction of a feature allowing users to switch between accounts.

The feature in question allowed individual users to link to multiple separate accounts together in order to more easily switch between accounts. An error in the feature resulted in all linked accounts being counted as separate monetizable daily active users.

While Elon Musk’s purchase of Twitter is not expected to close for several months, the company canceled its planned earnings conference call shortly after the deal was announced in late April.

Additionally, the company said it would not be providing its forward-looking guidance. It is also withdrawing earlier goals and outlooks.

The deal between Twitter and Elon Musk is expected to close sometime this year.