Elon Musk has disclosed that a decline in advertising revenue of about 50% and a high debt burden are the key reasons why Twitter’s cash flow is still negative.
“Need to reach positive cash flow before we have the luxury of anything else,” Musk said in a tweet on Saturday.
Musk’s acquisition of Twitter in October was followed by months of instability for the social media company, including hundreds of layoffs, criticism for sloppy content moderation, and a mass departure of sponsors who did not want their ads to appear next to offensive content.
Linda Yaccarino, a former head of advertising at Comcast’s NBCUniversal, was appointed CEO by Elon Musk in early June indicating that Twitter still prioritises ad sales even as it strives to boost subscription revenue.
In an effort to entice more content creators to the site, Twitter said on Thursday that some of them will be qualified to get a portion of the ad money the firm generates.
