September 21, 2023

Regardless of some fairly drastic cost-cutting measures and the rent of a brand new CEO to lure advertisers again, it seems that Twitter continues to be shedding cash. In a sequence of tweets printed over the weekend, Elon Musk stated that Twitter’s advert income hasn’t recovered but and that the corporate’s “heavy” debt load continues to take its toll.

“We’re nonetheless damaging money move, resulting from ~50% drop in promoting income plus heavy debt load. Want to achieve optimistic money move earlier than we now have the luxurious of the rest,” Musk tweeted. In a separate tweet, the proprietor of Twitter added that we didn’t see the rise in promoting income that was anticipated in June.”

Musk’s newest statements on Twitter’s monetary state of affairs contradict what the exec beforehand stated in an interview with the BBC that was broadcasted stay on Twitter in April. On the time, Musk stated that Twitter was “roughly breaking even” in Q1 and that “virtually all advertisers have come again or stated they will come again.”

In June, longtime promoting government Linda Yaccarino grew to become the brand new CEO of Twitter. The previous head of promoting at NBCUniversal seems to be specializing in enterprise operations at Twitter whereas Musk now oversees product design. Nevertheless, it’s definitely no simple job to work with Musk, whose steady stream of unfiltered tweets could proceed to scare advertisers away. Certainly, Musk’s newest antics embody at least a cage match provide and a few below-the-waist private assaults directed at Meta CEO Mark Zuckerberg, who not too long ago launched a Twitter clone referred to as Threads.

Whereas Twitter stays in troubled waters following its acquisition by Elon Musk, the corporate has additionally began spending cash to reward a few of its content material creators. The brand new Creator Adverts Income Sharing Program, which can roll out extra broadly to Twitter Blue subscribers later this month, will permit creators to get a share in advert income from the adverts displaying within the replies to their posts. Musk tweeted yesterday that Twitter will quickly share advert income from profile web page views from verified customers as properly, which ought to “roughly double payouts.”