American billionaire Elon Musk said Saturday that cash flow to twitter It remains negative due to a drop in ad revenue of nearly 50% and a heavy debt load, which fell short of its prediction in March that the platform could reach positive cash flow by June.
Musk said in a tweet on Twitter: “We need to reach positive cash flow before we can have the luxury of anything else.”
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
– Elon Musk (@elonmusk) July 15, 2023
This is the latest sign that aggressive cost-cutting measures since Musk’s acquisition of Twitter last October weren’t enough alone to shift cash flow into positive territory. They also suggest that Twitter ad revenue may not have recovered as quickly as Musk spoke in an interview with the BBC in April when he said most advertisers had returned to the site.
And after laying off thousands of employees and cutting cloud services bills, Musk said The company cut its expenses non-debt-related to $1.5 billion from $4.5 billion expected in 2023. Twitter also has to make annual interest payments of about $1.5 billion.
It was not clear how long Musk had indicated for the decline Advertising revenue in it by 50%.
Musk said Twitter is on track to generate $3 billion in revenue in 2023, down from $5.1 billion in 2021.
Twitter was criticized for being lax in supervising content, which was followed by the withdrawal of a large number of advertisers for fear that their ads would appear alongside inappropriate content.
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