Elon Musk reveals that Twitter remains cash flow negative as ad revenue drops 50%

Elon Musk has revealed that Twitter‘s cash flow still remains negative ever since he bought it last 2022, this is due to the fact that it has roughly seen a 50% drop in ad revenue along with a “heavy debt load”.

Furthermore, this is far from its estimate that Twitter could be cash flow positive by June and that its current priority is the “Need to reach positive cash flow before we have the luxury of anything else”. 

We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.

— Elon Musk (@elonmusk) July 15, 2023

This also comes after it was revealed that Twitter would be starting to pay verified users some share of its ad revenue.

According to Reuters, after laying off thousands of its employees, Twitter had reduced its non-debt expenditures to USD 1.5PHP 88INR 127EUR 1CNY 11 billion from its projected USD 4.5PHP 264INR 381EUR 4CNY 33 billion in 2023.

Twitter is also faced with nearly USD 1.5PHP 88INR 127EUR 1CNY 11 billion in annual interest payments as a result of the USD 44PHP 2,582INR 3,729EUR 42CNY 320 billion deal that had it transition back to a private company.