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According to Elon Musk, Twitter is still spending more money than it is earning. In the early hours of Saturday morning, billionaire Tweeted The company was suffering from ongoing negative cash flow problems due to an almost 50 percent decline in advertising revenue and a heavy debt burden. “We need to reach positive cash flow before we can have the luxury of anything else,” Musk said.
Due to the ~50% drop in advertising revenue and a heavy debt load, we are still negative cash flow. We need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) 15 July 2023
The acknowledgment comes the same week that Twitter’s ad-revenue sharing program began rolling out payments, including a handful. Musk on Friday The social network could see an “all-time high device user second usage” sometime this week. He also previously stated that almost all advertisers who had left the platform after him “either came back” or “said they would come back.”
According to an estimate shared with research firm Sensor Tower Ad spending fell 89 percent to $7.6 million during the two-month period earlier this year. Per Twitter has to make annual interest payments of about $1.5 billion because of the debt the company took on when Musk took it private for $44 billion. It’s the latest sign that the aggressive cost-cutting measures Musk has taken over the past year haven’t been enough to put the company on solid financial footing. It also suggests that the company’s newly appointed CEO has her work cut out for her as she works to rebuild Twitter’s advertising base.
