According to Elon Musk, Twitter is still facing financial losses as advertising revenue has decreased by 50%.
In response to a tweet offering business advice, Musk tweeted on Saturday, “We are still experiencing negative cash flow, primarily due to a 50% drop in advertising revenue and a significant debt burden.”
“We need to achieve positive cash flow before we can afford to address anything else,” he concluded.
Since acquiring Twitter in a $44 billion deal last fall, Musk has made efforts to reassure advertisers who were concerned about the departure of top executives, widespread layoffs, and changes in content moderation. Some high-profile users who had been banned were also allowed back on the platform.
In April, Musk stated that most of the advertisers who had left had returned and that the company might achieve positive cash flow in the second quarter.
In May, he appointed Linda Yaccarino, an NBCUniversal executive with extensive connections in the advertising industry, as the new CEO.
However, Twitter has faced backlash from some users for introducing new limits on the number of tweets they can view in a day, leading to complaints of being locked out of the site. Musk explained that these restrictions were necessary to prevent unauthorized scraping of potentially valuable data.
This month, Twitter faced new competition when Meta, the owner of Facebook, launched a text-focused app called Threads, gaining millions of sign-ups within days. In response, Twitter threatened legal action.