As Threads keeps expanding, Twitter’s revenue declines by 50%
Twitter continues to experience negative cash flow due to a significant decline of nearly 50% in advertising revenue, coupled with a substantial debt burden. Elon Musk expressed disappointment in Twitter’s performance, stating that the app fell short of his expectations since March. Musk expressed hope that Twitter would achieve positive cash flow by June, emphasizing the importance of reaching this milestone before considering other endeavors.
The competition between Twitter and Mark Zuckerberg’s rival platform, Threads, has been intensifying. It’s worth noting that Threads, despite generating interest from some advertising firms, is not currently hosting advertisements on its platform.
Musk’s hiring of Linda Yaccarino indicates that ad sales remain a priority for Twitter, even as they aim to increase subscription revenue. Twitter has faced criticism for poor content moderation, leading to the departure of advertisers concerned about their ads appearing alongside inappropriate content.
In an effort to attract more content creators, Twitter recently announced that select creators will be eligible to receive a portion of the ad revenue generated by the platform. This move follows Twitter’s implementation of payments to content creators for posting advertisements, with some users reporting substantial payouts exceeding $10,000.
The latest developments suggest that Twitter’s aggressive cost-cutting measures, implemented since Musk acquired the company, have not been sufficient to achieve positive cash flow. It also implies that Twitter’s ad revenue may not have rebounded as quickly as Musk previously suggested. Twitter faces the challenge of reducing its debt and improving its financial performance while navigating a competitive landscape.