Elon Musk, owner of Twitter, confirmed that the platform is still facing negative cash flow due to a 50% decline in ad revenue and significant debt. In a tweet, Musk said the company needs to achieve positive cash flow before addressing anything else. Previously, Musk said most advertisers who had left the platform after his takeover had either returned or said they would do so. - He didn't specify the timeframe for the 50% drop in ad revenue.
- He has previously said Twitter was on track to post $3B in revenue in 2023, down from $5.1B in 2021.
By the numbers: - Sensor Tower, a research firm, estimates that ad spending on Twitter dropped 89% to $7.6M over a two-month period.
- Before Musk acquired Twitter, the top 10 advertisers had spent $71M on ads between September and October.
- The company has annual interest payments of about $1.5B due to the debt incurred during Musk's privatization of Twitter for $44B.
Source: Insider Intelligence
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