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”.
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 1.5 billion from its projected USD 4.5 billion in 2023.
Twitter is also faced with nearly USD 1.5 billion in annual interest payments as a result of the USD 44 billion deal that had it transition back to a private company.
