Twitter missed expectations set in March that the company could achieve positive cash flow by June.
Photo: Reuters
“Need to get to positive cash flow before we can do other luxuries,” Musk said in a tweet responding to the recapitalization proposals.
It’s the latest sign that aggressive cost-cutting measures late last year weren’t enough to turn Twitter profitable, and suggests Twitter’s ad revenue may not recover as quickly as Mr Musk had thought.
After laying off thousands of employees and cutting other costs, Musk said the company had reduced non-debt spending to $1.5 billion, well below its previous projection of $4.5 billion by 2023. Twitter also has to pay about $1.5 billion in annual interest.
Musk said Twitter is on track to generate $3 billion in revenue in 2023, down from $5.1 billion in 2021. Twitter has been criticized for lax content moderation, leading to the departure of many advertisers.
Musk's hiring of Linda Yaccarino, a former advertising executive at Comcast's NBCUniversal, as CEO signals that selling ads is a top priority for Twitter even as it pushes to grow paid subscribers.
Yaccarino started at Twitter in early June and has told investors that Twitter plans to focus on video, creator and commerce partnerships, and is in early talks with political and entertainment figures, payments services, and news and media publishers.
Trung Kien (according to Reuters)
Source
Comment (0)