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Elon Musk says Twitter’s ad revenue is down 50% and cash flow is negative

Slartibartfast

Slartibartfast

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Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow.

The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”

The tweet is in stark contrast to his tone in April, when Musk told the BBC the platform is now “roughly breaking even” and that most of its advertisers have returned.

Ad revenue has been a contentious issue and an uphill battle for the site, after hordes of advertisers fled after Musk took over. Advertisers were concerned about content moderation, mass layoffs and general uncertainty about Twitter’s future.

“It’s definitely been extremely difficult,” Musk said in Twitter Spaces livestream event Musk hosted with Robert F. Kennedy, Jr last month. “Basically, our revenue is cut in half because we didn’t toe the line.” He added it’s been a “huge struggle for Twitter to break even.”

It looks like Elon's great experiment of allowing open racism and other antisocial activities is going poorly enough for him to admit how dire things are in twitter.
 
Slartibartfast said:

Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow.

The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”

The tweet is in stark contrast to his tone in April, when Musk told the BBC the platform is now “roughly breaking even” and that most of its advertisers have returned.

Ad revenue has been a contentious issue and an uphill battle for the site, after hordes of advertisers fled after Musk took over. Advertisers were concerned about content moderation, mass layoffs and general uncertainty about Twitter’s future.

“It’s definitely been extremely difficult,” Musk said in Twitter Spaces livestream event Musk hosted with Robert F. Kennedy, Jr last month. “Basically, our revenue is cut in half because we didn’t toe the line.” He added it’s been a “huge struggle for Twitter to break even.”

It looks like Elon's great experiment of allowing open racism and other antisocial activities is going poorly enough for him to admit how dire things are in twitter.
Click to expand...

Man who would have thought letting racists, anti-vaxxers spreading misinformation and bullies back on twitter along with firing almost all the moderator staff and tech staff would result in lower ad revenue?
 
Davin said:
Man who would have thought letting racists, anti-vaxxers spreading misinformation and bullies back on twitter along with firing almost all the moderator staff and tech staff would result in lower ad revenue?
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It seems he badly misjudged where society, in general, is at with these topics.
 
Slartibartfast said:
“Basically, our revenue is cut in half because we didn’t toe the line.” He added it’s been a “huge struggle for Twitter to break even.”
Click to expand...
That's one way to describe buying a company and telling the markets to kiss one's ass...
 
My company makes and sells steel coils and seamless pipe. When we venture outside of this, we typically fail. Sometimes it's best to stay in your lane.
 
i pray that when he bought Tesla (an idea and company founded by Martin Eberhard and Marc Tarpenning) and was kicked off the board of PayPal and then did his SpaceX thing that he lets the actual geniuses do their thing and stay out of the way. that's where he's failed at elon Twitter.



Tesla's founders...

Tesla founders Martin Eberhard, Marc Tarpenning on Elon Musk




"X.com was one of the first federally insured online banks, and over 200,000 customers joined in its initial months of operation. Even though Musk founded the company, investors regarded him as inexperienced and replaced him with Intuit CEO Bill Harris by the end of the year."
 
The corporate Progressive's are doing to Twitter what conserative voters are doing to Budweiser.
 
HenryChinaski said:
Nonsense.
Allowing one of the most popular and widely used Social Media platforms to turn into stormfront is a losing business venture.
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Twitter ad revenue is down because woke advertisers are virtue signaling. It is the same thing as what is being done to Budweiser on the consumer side of the equation.
 
CaughtInThe said:
i pray that when he bought Tesla (an idea and company founded by Martin Eberhard and Marc Tarpenning) and was kicked off the board of PayPal and then did his SpaceX thing that he lets the actual geniuses do their thing and stay out of the way. that's where he's failed at elon Twitter.



Tesla's founders...

Tesla founders Martin Eberhard, Marc Tarpenning on Elon Musk




"X.com was one of the first federally insured online banks, and over 200,000 customers joined in its initial months of operation. Even though Musk founded the company, investors regarded him as inexperienced and replaced him with Intuit CEO Bill Harris by the end of the year."
Click to expand...
Wow, he really showed those doofuses, didn't he?
 
Slartibartfast said:
It seems he badly misjudged where society, in general, is at with these topics.
Click to expand...
You're assuming he based this on profitability and made estimates about public opinion, when I think it's clearly not the case. Look at is more an act of political activism than as financial motives.
 
Slartibartfast said:

Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow.

The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”

The tweet is in stark contrast to his tone in April, when Musk told the BBC the platform is now “roughly breaking even” and that most of its advertisers have returned.

Ad revenue has been a contentious issue and an uphill battle for the site, after hordes of advertisers fled after Musk took over. Advertisers were concerned about content moderation, mass layoffs and general uncertainty about Twitter’s future.

“It’s definitely been extremely difficult,” Musk said in Twitter Spaces livestream event Musk hosted with Robert F. Kennedy, Jr last month. “Basically, our revenue is cut in half because we didn’t toe the line.” He added it’s been a “huge struggle for Twitter to break even.”

It looks like Elon's great experiment of allowing open racism and other antisocial activities is going poorly enough for him to admit how dire things are in twitter.
Click to expand...

I wonder if Threads will actually take a bite out of Twitters market share
 
Winston said:
I wonder if Threads will actually take a bite out of Twitters market share
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I think it’s going to take a bit. At minimum you will need thing like threads embed code generators, forums like this to update so that such can be displayed without a screen shot, a web portal, etc.

Once that ecosystem gets established though, I think you will start to see a major shift in traffic.
 
Winston said:
I wonder if Threads will actually take a bite out of Twitters market share
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Of course it's going to. It already is. Not all threads users continue the same activity on Titter (a typo I'll leave in place because of Musk changing the name).
 
trouble13 said:
Twitter ad revenue is down because woke advertisers are virtue signaling. It is the same thing as what is being done to Budweiser on the consumer side of the equation.
Click to expand...
Biggest victims ever, it’s always the other guys fault with your people.
It couldn’t possibly be that companies don’t want their products associated with racism, lies misogyny and negative ugliness.
 
Metric Mouse said:
Wow, he really showed those doofuses, didn't he?
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The least shocking thing today will be if you sit here and defend elon. Don't you have a maga really to go to?


Now, would you like for me to tell you how you're going to answer all of these questions in this thread since I know your system so well? Or do you want to play the game again?
 
trouble13 said:
Twitter ad revenue is down because woke advertisers are virtue signaling. It is the same thing as what is being done to Budweiser on the consumer side of the equation.
Click to expand...
If rejecting bigots is woke, then sign me up for being woke.
 
Slartibartfast said:

Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow.

The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”

The tweet is in stark contrast to his tone in April, when Musk told the BBC the platform is now “roughly breaking even” and that most of its advertisers have returned.

Ad revenue has been a contentious issue and an uphill battle for the site, after hordes of advertisers fled after Musk took over. Advertisers were concerned about content moderation, mass layoffs and general uncertainty about Twitter’s future.

“It’s definitely been extremely difficult,” Musk said in Twitter Spaces livestream event Musk hosted with Robert F. Kennedy, Jr last month. “Basically, our revenue is cut in half because we didn’t toe the line.” He added it’s been a “huge struggle for Twitter to break even.”

It looks like Elon's great experiment of allowing open racism and other antisocial activities is going poorly enough for him to admit how dire things are in twitter.
Click to expand...

This problem did not exist before he got involved.
 
trouble13 said:
The corporate Progressive's are doing to Twitter what conserative voters are doing to Budweiser.
Click to expand...
Except Twitter is in a worse state because their issues are for more existential than the Bud Light issue is for the larger company (AB InBev). Also, much of this is self inflicted because the instability Musk has introduced to an already shaky model has made it harder for advertisers to trust the platform is being well managed. If the Twitter brand gets tarnished, then far less people want to be associated with it. Musk's foray into him controlling content moderation has not fared well.
 
Craig234 said:
You're assuming he based this on profitability and made estimates about public opinion, when I think it's clearly not the case. Look at is more an act of political activism than as financial motives.
Click to expand...
Elon fired his tech staff, so the site was unstable and then he welcomed the Nazis and Incels back. Advertizers didn't like it and left. There is nothing political about it.
 
I have to say, I have never really understood why such a simple platform - short messages, user accounts, with linking - needs that large of an infrastructure to operate. Sure, there's advertising, there should be moderation. But thousands of people... billions of costs...
 
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