During his nine months at the helm of Twitter, Musk took several actions in an effort to improve the company’s financial health
Elon Musk, CEO of Twitter, recently revealed that the company has incurred a significant loss since taking ownership in October 2022, which is almost half of advertising revenues compared to the previous year. This has led to the company facing financial challenges, including negative cash flow and heavy debt. Musk shared the data in a tweet and later added that expectations of a revenue increase in June have not come true as hoped. However, he confirmed that the trend for the next period is positive, and the negative trend will be reversed thanks to some cuts. In particular, Musk stressed that the offer of Spaces, the Twitter discussion forum, does not currently generate any revenue and is considered a cost-only item at this early stage. Twitter expects total revenues of $3 billion in 2023, compared to $4.4 billion in 2022 and $5.1 billion in 2021. During his nine months at the helm of Twitter, Musk undertook several actions to improve the financial situation of the company. These include the layoff of thousands of employees and the reduction of expenses related to cloud services. Twitter faces stiff competition as its new rival, Meta Platforms’ Threads, has reportedly already amassed over 150 million users since it launched earlier this month, not in Europe for now.