Twitter Revenue Declines Under Musk’s Leadership as Advertisers Abandon Platform

03/04/2023 03:05 • Metaverse & Beyond • 73 views

According to reports, people familiar with the matter said that since Musk took over Twitter, many advertisers abandoned the social media platform, and Twitter’s revenue and adjusted revenue both declined in December. According to people familiar with the matter, Twitter said in its latest news to investors that the revenue and adjusted profit in December fell by about 40% year on year. Musk completed the acquisition of Twitter in October last year. Twitter’s financial situation is facing the challenge of high cost debt. At present, Musk is trying to stabilize the company’s financial situation. It is reported that Twitter needs to repay about $13 billion of debt, and the annual interest is estimated to exceed $1 billion. People familiar with the matter said that the company recently paid the first interest to the bank. (Wall Street Journal)

The revenue and profit of Twitter declined by about 40% year-on-year in December last year

Interpretation of the news:

According to recent reports, Twitter’s revenue and adjusted profit both fell by about 40% in December compared to the same time last year. This decline has been attributed to the significant loss of advertisers who abandoned the platform under the leadership of Elon Musk, who took over Twitter in October 2021. Despite his efforts to stabilize the social media giant’s financial situation, Twitter is struggling with high-cost debt and significant repayment obligations.

While Musk is best known for his work with SpaceX and Tesla, he has not shied away from his interest in social media platforms. Under his leadership, Twitter has undergone significant changes, including a shift toward decentralized social media and an increased focus on cryptocurrency. Despite these efforts, it seems that advertisers are not attracted to the platform. This loss of advertising revenue has had a significant impact on Twitter’s bottom line, leading to a 40% decline in both revenue and adjusted profit.

Twitter’s financial situation is also complicated by its high-cost debt obligations. The company reportedly owes $13 billion in debt, with an annual interest rate that is estimated to exceed $1 billion. While the company has recently made efforts to repay this debt, it remains a significant challenge for the company going forward. Musk is now focused on stabilizing the company’s finances, but it is unclear what changes he plans to make to attract advertisers back to the platform.

In conclusion, under Musk’s leadership, Twitter is facing a significant decline in revenue and adjusted profit, largely due to the loss of advertisers who have abandoned the platform. This decline in revenue is coupled with the company’s high-cost debt obligations, making the financial outlook for the company challenging. As Musk works to stabilize the company’s finances, it remains to be seen what changes he plans to make to attract advertisers back to the platform and improve Twitter’s bottom line.

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