Twitter remains to be spending more cash than it’s making, in response to Elon Musk. Within the early hours of Saturday morning, the billionaire tweeted the corporate was affected by an ongoing destructive money stream difficulty because of an roughly 50 p.c drop in promoting income and heavy debt burden. “Want to succeed in optimistic money stream earlier than we now have the luxurious of anything,” Musk mentioned.
We’re nonetheless destructive money stream, because of ~50% drop in promoting income plus heavy debt load. Want to succeed in optimistic money stream earlier than we now have the luxurious of anything.
— 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 person seconds utilization” someday this week. He additionally beforehand mentioned nearly all of the advertisers who had left the platform following his had “both come again” or “mentioned they’ll come again.”
Based on an estimate analysis agency Sensor Tower shared with , promoting spending fell by 89 p.c 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 personal for $44 billion. That is the newest signal the aggressive cost-cutting measures Musk has undertaken within the final 12 months haven’t been sufficient to place the corporate on stable monetary footing. It additionally suggests the corporate’s newly appointed CEO, , has her work lower out for her as she works to rebuild Twitter’s promoting base.