The consequences that "macroeconomic events" will bring to Twitter Inc.'s business are "uncertain" and its advertising revenue could be negatively affected in the future, the company warned on Tuesday in a filing submitted to the United States Securities and Exchange Commission (SEC).
The crisis in eastern Europe, the COVID-19 pandemic, and "actions taken to counter inflation" were identified by the social media platform as those events. "Supply chain constraints, labor shortages, inflation, and rising interest rates and reduced consumer confidence have caused advertisers in a variety of industries to be cautious in their spending and to either pause or slow their campaigns," Twitter explained.
Due to these developments, the company said it will be looking to "reduce... expense growth" and revealed that it "significantly slowed hiring in the second quarter." Twitter also warned that "our past results may not be indicative of our future performance."
