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Elon Musk said Twitter remains cash flow negative due to a nearly 50% drop in ad revenue and a heavy debt load. That said, he fell short of his March expectation that Twitter would be cash-flow positive in June.
This is the latest operating figure since Musk bought Twitter last October (it was delisted after the acquisition), and suggests that Twitter’s advertising revenue may not have recovered as quickly as Musk said in an interview with the BBC in April. Musk said at the time that most advertisers had returned to the Twitter platform. Before then, Twitter had been criticized for lax content censorship, which further triggered a massive retreat from advertisers who were reluctant to place their ads on inappropriate content.
After laying off thousands of people and reducing spending on cloud services, Musk has said that the company has reduced non-debt spending from an estimated $4.5 billion in 2023 (currently about 32.175 billion yuan) to $1.5 billion (currently about 10.725 billion yuan). Yuan Renminbi).
In addition, due to the debt assumed in the US$44 billion (currently about 314.6 billion yuan) transaction, Twitter also needs to pay about US$1.5 billion a year (currently about 10.725 billion yuan) in interest.
The time frame Musk mentioned for a 50% decline in ad revenue is unclear. He has said Twitter’s revenue target for 2023 is $3 billion, down from $5.1 billion in 2021.
Source: IT Home
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