Twitter proprietor Elon Musk mentioned the corporate nonetheless has a detrimental money circulate due to its heavy debt load and a roughly 50% drop in promoting income.
The social media web site will “want to achieve constructive money circulate earlier than we have now the luxurious of anything,” Musk mentioned in a tweet.
A number of prime advertisers paused spending on the platform after Musk acquired the corporate final 12 months over considerations about modifications the billionaire may make. Earlier this 12 months, Musk mentioned that most of the advertisers who fled had returned, and that changing into cash-flow constructive was imminent.
“Nearly all of them have both come again or mentioned they’re coming again,” Musk mentioned in a Twitter Areas in April.
Advertiser spending dropped 89% to $7.6 million over a two-month interval early this 12 months, in response to estimates for market analysis agency Sensor Tower. The highest 10 advertisers had spent $71 million on adverts 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 modifications 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 hundreds of workers within the wake of the deal. Amongst different modifications, Musk launched Twitter Blue, which lets customers to confirm their id for $8 per thirty 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.
