Musk recognized Twitter as unprofitable due to falling advertising revenue – Kommersant
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Twitter owner Elon Musk said that the social network is still unprofitable due to falling advertising revenues and a large debt burden. Leading advertisers have pulled out of Twitter for fear of the changes a new owner might bring.
“We continue to have negative cash flow due to a roughly 50% drop in advertising revenue and a heavy leverage. We need to achieve a positive cash flow before we can afford any luxury,” Elon Musk wrote on Twitter in response to a suggestion from one of the users to create more favorable conditions for the maintenance of the site.
At the same time, in April, Elon Musk said that most of the advertisers have either already returned, or are going to return it in the near future. About 90% of Twitter’s revenue in 2022 came from advertisers, but in January of this year, the company’s revenue fell by 40% in daily terms.
Elon Musk bought Twitter for $44 billion on October 27th. A few hours after the purchase, the businessman fired the CEO and CFO of the company.
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