Elon Musk says Twitter's cash flow still negative as ad revenue drops 50%

[groundloop]

Source: Reuters

Twitter's cash flow remains negative because of a nearly 50% drop in advertising revenue and a heavy debt load, Elon Musk said on Saturday, falling short of his expectation in March that Twitter could reach cash flow positive by June.

"Need to reach positive cash flow before we have the luxury of anything else," Musk said in a tweet replying to suggestions on recapitalization.

This is the latest sign that the aggressive cost-cutting measures since Musk acquired Twitter in October alone are not enough to get Twitter to cash flow positive, and suggests Twitter's ad revenue may have not recovered as fast as Musk suggested in an interview in April with the BBC that most advertisers had returned to the site.

After laying off thousands of employees and cutting cloud service bills, Musk had said the company reduced its non-debt expenditures to $1.5 billion from a projected $4.5 billion in 2023. Twitter also faces annual interest payments of about $1.5 billion as a result of the debt it took on in the $44 billion deal that turned the company private.

Read more: https://www.reuters.com/technology/elon-musk-says-twitters-cash-flow-still-negative-ad-revenue-drops-2023-07-15/?utm_source=Sailthru&utm_medium=Newsletter&utm_campaign=Technology-Roundup&utm_term=071523

[dalton99a]

1. He needs to lay off the owner

[Joinfortmill]

10. Right on!

[Brother Buzz]

17. DUzy worthy!

[RKP5637]

22. K&R Absolutely!!!! n/t

[underpants]

2. Sounds like it's going really well.

[orthoclad]

30. Actually reaching its goal

of empowering the far-right.
He can afford to take a hit, a few billion here, a few billion there, as long as he can platform people like RFKJr and Andrew Tate.
At a certain point, power is worth more than wealth.

Besides, his personality problems get a stretch. He gets to play "humorous Bond villain".

[womanofthehills]

37. It is in Japan big time- Canada not so much

Obviously, the Japanese love Twitter. Japan has more user active seconds than US.

Link to tweet

?s=46&t=YZgyyp4w_z7vW3neKxa6cQ

[yardwork]

40. Musk has been known to lie.

[bucolic_frolic]

3. Now's the time to boycott it more, he's almost on the ropes.

Would be epic if his empire collapsed.

[womanofthehills]

34. Actually- like Tic-Toc, Twitter just started paying influencers

Posters are posting the amts they received - Brian Krassenstein posted he got a Twitter check for $24,305 for 3 months of tweets (you need a blue check to participate & your check is dependent on how many impressions you rack up)

)

"How I Made $24,305 on Twitter

After yesterday's revelation that many users on Twitter received unexpectedly high payouts, I had an inbox fukll of messages asking me about why I have been so successful on this platform.

Link to tweet

?s=46&t=YZgyyp4w_z7vW3neKxa6cQ305

Link to tweet

?s=46&t=YZgyyp4w_z7vW3neKxa6cQI’m

[SWBTATTReg]

4. Serves the idiot right.

[BlueIdaho]

5. Elon's Two Part Business Plan

1. Start with a lot of money and slowly bleed the company to death.
2. Find someone else to blame when the shit hits the fan.

[sakabatou]

9. Yup.

[kysrsoze]

6. That's wonderful news. It shows hi incompetence.

[LiberalFighter]

7. Isn't interest great? Hope it was a very high interest he has to pay.

[Mysterian]

8. Another genius like Trump running a business into the ditch

But the incels love Elon.

[Pluvious]

11. A lesson in how effective "trickle down" is not...

Sacrificing the entire Middle Class to build a cadre of billionaires
maybe wasn’t the winning plan after all

[Blues Heron]

12. He just cut the number of potential ad views by forcing people to be logged in to see tweets

I doubt advertisers view that as a good move.

[Kennah]

13. I wonder how the bonesaw crew will respond

[Shipwack]

29. There is a theory being floated that this is exactly what they wanted...

I've seen and heard some people say that since Twitter was so powerful and influential for the left (not to mention its role in the Arab Spring), that people decided to destroy it, and Musk is doing their bidding.

I personally don't buy into this myself.

"Never attribute to malice that which is adequately explained by stupidity." - Hanlon's Razor

[orthoclad]

31. There's plenty enough malice to go around.

He likes playing Bond villain.

[Kennah]

41. Clouseau could take him down

[Major Nikon]

14. Fucking up a formerly profitable company six ways to Sunday is a great way to increase cash flow

[cstanleytech]

24. Question is though will it help or actually hurt him in the pocket book?

After all if it helps him by allowing him to reduce his taxes in some way to the point where he pays less in taxes than what he paid for Twitter he will consider it a win.

[orthoclad]

32. Does he want the cash or the power?

Or maybe stroke his flaccid ego?

He has billions to spare.

[ificandream]

15. I'm still amazed that Twitter pushed so hard to get this clown.

One of the stupidest business moves in history.

[Claustrum]

16. The shareholders all got a big payday back then.

They all made out with stocks that Elon paid extra for. They made bank. They no longer own any stocks since Elon bought them all and made Twitter private. It's the poor workers that got the short end of the stick and got fired or remained but working 2-3x the workload.

[moniss]

18. Both of those issues

are completely self-inflicted. Such a genius.

[IronLionZion]

19. Super genius

Dude is way too clever for his own good

[LiberalArkie]

20. Gee, Elon, you mean you are not as smart as you tell everyone. That you only know how to throw

money at something and hope you do not have to do anything but play like a rocket scientist or an auto maker?

[Bird Lady]

21. Oh boo hoo, elonie.

May you choke on twitter.

[cstanleytech]

23. I will not return to Twitter as long as Musk owns Twitter or has a say in how its run.

[Auggy74]

25. Aggressive cost cutting -

Is that another way of saying "Not paying the bill"?

[Oopsie Daisy]

26. What a shame. I think he should just close up shop and call it a day.

[JustABozoOnThisBus]

27. The obvious solution for lazy executives: more layoffs.

worker salary has always been the biggest drain on shareholder profits. blame the rank & file.

(sarcasm, of course.)

solidarity forever

[JI7]

28. Doesn't limiting views to Twitter hurt with ads ?

advertisers will be less likely to want to pay if views are limited ?

[orthoclad]

33. That's why I won't click on twit links

I won't monetize Nazis.

[Xanchez]

35. Another failed prediction by Musk

He said he would send a human to Mars by 2021.

[Javaman]

36. With people bailing twitter for threads

He will never have a positive cash flow now

[twodogsbarking]

38. Anyone surprised? Anyone?

[BlueWavePsych]

39. Kick

[csziggy]

42. I just learned that Eloon is suing the lawyers that "forced" him to buy Twitter!