Connect with us

Social & Entertainment

Elon Musk drops Bombshell on Twitter’s financial health in BBC interview – says it’s roughly Breaking Even.

Published

on

Elon Musk

Elon Musk in an exclusive interview with BBC reveals that Twitter is roughly Breaking Even with just 1,500 Employees.

Elon Musk, the CEO of Tesla and SpaceX, recently took to Twitter to share his thoughts on the financial status of the social media platform. In response to a user who asked him why he continues to use Twitter despite its many controversies, Musk revealed that Twitter is “roughly” breaking even.

Musk’s statement is an interesting one, given that Twitter has had a tumultuous financial history since going public in 2013. While the platform has seen steady revenue growth in recent years, it has yet to turn a profit. As of the fourth quarter of 2021, Twitter reported a net loss of $116 million.

 Elon Musk made a shocking revelation during a live interview on Twitter Spaces with the BBC, disclosing that Twitter’s workforce has dramatically decreased to approximately 1,500 employees. This represents a significant drop from the nearly 8,000 staff members it had before Musk’s takeover in October.

In an interview with BBC, Musk stated that Twitter faced a negative cash flow situation of $3 billion and had to resort to significant measures such as conducting large-scale layoffs. He further stated “We could be cash-flow positive this quarter if things go well,” in the interview, which garnered more than 3 million listeners. He further mentioned that the current user numbers are at an all-time high.

What made Twitter suffer

Musk’s statement is not entirely surprising. Twitter has made significant changes to its business model in recent years, such as increasing advertising revenue, data licensing, and introducing a subscription-based service. Additionally, Twitter has been focusing on improving the user experience with features like Spaces, which allows users to host live audio conversations and a “tip jar” feature for creators.

These changes have been reflected in Twitter’s financial reports. In its most recent earnings report, Twitter reported a revenue of $1.29 billion, a 31% increase from the previous year. Twitter’s advertising revenue also grew by 31% year-over-year, driven by strong performance in the US and international markets.

It is clearly evident that the chaos and uncertainty have marked Twitter since Elon Musk’s $44 billion acquisition. The social media platform has experienced several layoffs, including many engineers responsible for maintaining service reliability and preventing outages. This situation has added to the instability of Twitter in recent times.

Elon Musk’s Response

Twitter experienced a significant drop in advertising after its acquisition by Musk. Musk believes the cyclical nature of ad spending and some political factors as the primary factors behind the drop. He also claims that most of the advertisers have now returned. Musk, who also runs Tesla and SpaceX, confirmed that he does not have any particular candidate in mind to take over as the CEO of Twitter. As Musk has been facing pressure from Tesla investors regarding the amount of time he spends on Twitter, he had previously stated that finding a new Twitter CEO by the end of the year would be appropriate.

What future holds for Twitter

Despite these claims, Twitter still faces challenges in its quest for profitability. The platform has struggled to retain users and attract new ones, particularly younger demographics who are flocking to newer social media platforms like TikTok, Snapchat and Instagram.

In addition, Twitter has faced criticism for its handling of misinformation, hate speech, and other harmful content on the platform. The company has made efforts to address these issues, but it remains to be seen whether these efforts will be enough to retain users and advertisers.

Trending

Copyright © 2023 Futurfeed