Elon Musk says, ``Twitter has a 50% decrease in advertising revenue and cash flow is still negative.''

Twitter has long struggled to generate revenue, and was acquired by entrepreneur Elon Musk in November 2022 after repeated rumors of selling. After Mr. Mask acquired Twitter, the company has secured new revenue sources by releasing Twitter Blue where you can purchase authenticated badges, but Twitter's main source of revenue is still advertising revenue. However, Mr. Mask revealed that this advertising revenue has decreased by 50% from the maximum.

Twitter struggles with half the ad revenue, massive debt
https://appleinsider.com/articles/23/07/15/twitter-loses-half-its-ad-revenue-still-weighed-down-by-debt

On July 15, 2023, Musk said on his Twitter account, ``In addition to Twitter's ad revenue dropping by up to 50%, cash flow is still negative due to the large amount of debt. We need to achieve positive cash flow before we can afford the luxury of doing it,' he tweeted, revealing that ad revenue has fallen by up to 50% and cash flow is still negative.

We're still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.

— Elon Musk (@elonmusk) July 15, 2023

As of March 2023, Mr. Mask predicted that Twitter's cash flow could turn positive by the second quarter of 2023 (April-June), but even at the time of writing the article, cash flow It turned out to be still negative.

In an interview with the BBC in April 2023, Musk said, ``Cash flow could be positive this quarter.''

It was discovered in an interview with Earon Mask that the number of Twitter employees has drastically decreased from 8,000 to 1,500, but it is also clear that Twitter is likely to succeed in making a profit soon-GIGAZINE

In addition, Twitter's large amount of debt is due to ``interest payment on debt of 13 billion dollars (about 1.8 trillion yen) that occurred when Mr. Mask acquired Twitter'', and according to reports, this interest payment It is pointed out that it is about 1.5 billion dollars (about 200 billion yen) annually.

The first payment date of about 1.7 trillion yen debt interest that occurred at the time of Twitter acquisition will soon come - GIGAZINE

Regarding the 50% decrease in advertising revenue, it has been often pointed out that there has been a shift away from advertisers since Mr. Musk acquired the company, and it was reported that in January 2023, advertising revenue would decrease by 40% compared to the previous year. was

Twitter's daily revenue decreased by 40% year-on-year, revealing that more than 500 of the top advertisers suspended advertising spending-GIGAZINE

In addition, Twitter has reduced personnel several times to improve profitability, but in June 2023 it became clearthat office rent was not paid , etc., and it is still a difficult business situation.