Twitter proprietor Elon Musk stated the corporate nonetheless has a adverse money stream due to its heavy debt load and a roughly 50% drop in promoting income.
The social media web site will “want to achieve optimistic money stream earlier than we’ve the posh of the rest,” Musk stated in a tweet.
A number of prime advertisers paused spending on the platform after Musk acquired the corporate final yr over issues about adjustments the billionaire might make. Earlier this yr, Musk stated that most of the advertisers who fled had returned, and that changing into cash-flow optimistic was imminent.
We’re nonetheless adverse money stream, because of ~50% drop in promoting income plus heavy debt load. Want to achieve optimistic money stream earlier than we’ve the posh of the rest.
— Elon Musk (@elonmusk) July 15, 2023
“Nearly all of them have both come again or stated they’re coming again,” Musk stated in a Twitter Areas in April.
Advertiser spending dropped 89% to $7.6 million over a two-month interval early this yr, in response to estimates for market analysis agency Sensor Tower. The highest 10 advertisers had spent $71 million on advertisements from September to October of 2022, forward of Musk’s acquisition.
Musk bought the social media firm for $44 billion in late October 2022. He has since made a slew of adjustments to the product and firm construction, lots of which he attributes to lowering the corporate’s money burn and debt burden.
The agency laid off 1000’s of workers within the wake of the deal. Amongst different adjustments, Musk launched Twitter Blue, which lets customers to confirm their id for $8 per 30 days, and debuted methods for customers to monetize their content material.
Meta Platforms Inc.’s Mark Zuckerberg launched his personal Twitter competitor this month, Threads, which quickly reached 100 million customers within the days after its launch. Some lawmakers have transitioned over to the choice platform, however are nonetheless cautious about committing to it.