Figures released by Elon Musk's company show that Twitter has experienced a drop of around 45% in its advertising income since its acquisition.
He asserted that the company had not witnessed the rise in sales they had hoped for in June, yet noted that July looked "slightly more hopeful".
When Mr Musk assumed control in 2022, he dismissed roughly half of Twitter's 7,500 employees to reduce expenses.
It has been estimated that Threads, a competing app, has acquired 150 million users.
The Meta-designed platform is built with direct access to Instagram, granting it the potential to reach two billion users.
At the same time, Twitter is having difficulty because of a considerable amount of debt. Cash flow remains bad, according to Mr Musk's statements during the weekend, though the billionaire didn't specify when the 50% reduction in advertisement revenue would happen.
In a tweet, he declared that reaching positive cash flow was necessary before considering anything else.
Mr Musk declared that, despite having laid off thousands of workers and reducing their cloud service costs, Twitter should be able to generate $3bn in revenue by 2023, compared to the $5.1bn it will earn in 2021.
This latest development indicates that the vigorous cost-reduction plans have failed to bring back advertisers who abandoned the platform after adjustments were made to the content moderation regulations.
Despite an interview with the BBC in April where Mr Musk indicated that most had gone back to the location,
But Meghana Dhar, the ex-partnerships head of Snap and Meta (owner of the fresh-on-the-scene Twitter alternate Threads), noted that the firm had been suffering before Mr Musk's acquisition.
She commented to BBC's Today programme that Elon and Twitter are currently in an undeniably challenging position. To be fair, however, the decline in Twitter revenue and development in income has been gradually decreasing before Elon's involvement.
Lucy Coutts, the investment director at JM Finn, remarked that, despite the difficulty, it is likely that he will eventually succeed; however, it will likely take longer.
However, he has to repay $13bn of debt by the close of July, increasing the pressure on Tesla's stocks if he has to relinquish more of his interest in the company.
Mr Musk is the head of Tesla, the electric car-maker, and holds the most shares. They will be presenting their latest financial report on Wednesday.
In June, Linda Yaccarino, formerly the head of advertising at NBCUniversal, was appointed CEO of Twitter, indicating that advertising sales remain a priority for the company.
Ms Yaccarino has expressed that Twitter intends to concentrate on video, creator and commercial collaborations. It has purportedly started initial conversations with political and entertainment celebrities, payment services, and news and media publishers.
Comentários