Twitter owner Elon Musk recently confirmed that the social media platform has lost half its ad revenue.
Musk replied to a refactoring debt question, saying that the company is in ‘negative cash flow due to a 50% drop in advertising revenue’ and said that Twitter has not had any cash flow positive. In March, the CEO made a prediction that Twitter will reach positive cash flow in Q2 2023, but so far it hasn’t ‘met the mark’ yet.
The social media platform’s debt issue has been compounded by interest payments when Musk bought the company and turned it private. Reuters reports that the annual payment is around $1.5 billion. Furthermore, there’s a 50% ad revenue drop as the company fell off with advertisers after Musk took over. It’s believed that Apple was one of those who dropped the platform, then came back. Recently, Twitter has seen competition in the newly-launched Threads platform by Meta.