July 17, 2023
Elon Musk has revealed that Twitter’s cash flow remains negative due to a nearly 50% decline in advertising revenue and a heavy debt load, despite his positive expectations, and that the company faces annual interest payments of about $1.5 billion.
Musk had previously said that Twitter could reach cash flow positive by June, but it appears that the company is not on track to meet that goal. The decline in Twitter’s cash flow is likely due to a number of factors, including the ongoing war in Ukraine, which has led to a slowdown in global advertising spending.
The news that Twitter’s cash flow remains negative is a setback for Musk, who has been trying to turn the company around since he acquired it in October 2022. Musk has said that he wants to make Twitter a more open and free platform for speech, but he has also faced criticism for his plans to cut costs and lay off employees.
Responding to a Twitter user who suggested options on whether he should make Twitter more of a public utility or a business meant to generate cash flow, Musk said, “Need to reach positive cash flow before we have the luxury of anything else.”
The sources for this piece include an article in Reuters.
