Twitter’s cash flow is still negative due to a significant decline in advertising revenue and a large amount of debt according to Elon Musk.
Twitter Ad Revenue Is Not Promising
Elon Musk stated that this outcome falls below his previous prediction in March that Twitter would achieve positive cash flow by June. He said in a tweet: “Need to reach positive cash flow before we have the luxury of anything else.”.
Musk announced on Sunday in a different tweet that Twitter did not experience the anticipated surge in advertising revenue in June. However, he also mentioned that July holds a more promising outlook. According to Musk, Twitter Spaces has not generated any revenue yet and is currently operating at high costs.
Twitter’s aggressive cost-cutting measures have not been sufficient to make the platform cash flow positive. This suggests that Twitter’s ad revenue might not have recovered as fast as Elon Musk had declared in an April interview with the BBC. During the interview, Musk had mentioned that the majority of advertisers had come back to the platform.
Musk hired Linda Yaccarino, former ad chief at Comcast’s NBCUniversal, as CEO. This shows that Twitter is focusing on ad sales while also trying to grow its subscription revenue.