Twitter remains to be spending extra money than it’s making, in line with Elon Musk. Within the early hours of Saturday morning, the billionaire tweeted the corporate was affected by an ongoing destructive money movement subject as a result of an roughly 50 % drop in promoting income and heavy debt burden. “Want to succeed in optimistic money movement earlier than we have now the posh of the rest,” Musk stated.
We’re nonetheless destructive money movement, as a result of ~50% drop in promoting income plus heavy debt load. Want to succeed in optimistic money movement earlier than we have now the posh of the rest.
— Elon Musk (@elonmusk) July 15, 2023
The admission is available in the identical week that Twitter’s ad-revenue sharing program started paying out , together with a handful of . On Friday, Musk additionally the social community may see “all-time excessive system consumer seconds utilization” someday this week. He additionally beforehand stated virtually all of the advertisers who had left the platform following his had “both come again” or “stated they’ll come again.”
Based on an estimate analysis agency Sensor Tower shared with , promoting spending fell by 89 % to $7.6 million throughout a two-month interval earlier this 12 months. Per , Twitter has annual curiosity funds of about $1.5 billion as a result of debt the corporate took on when Musk took it non-public for $44 billion. That is the most recent signal the aggressive cost-cutting measures Musk has undertaken within the final 12 months haven’t been sufficient to place the corporate on strong monetary footing. It additionally suggests the corporate’s newly appointed CEO, , has her work reduce out for her as she works to rebuild Twitter’s promoting base.
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