Elon Musk says that Twitter is still under negative cash flow, with a decrease in the ad revenue generated being below 50% and heavy unpaid debts.
Twitter ad revenue has seen a dip by 50%, said Elon Musk in a Tweet responding to a user. He further said that the negative cash flow would be an obstacle until any further plans for the evolution are strategized or executed. He gave the statement via a Tweet while in conversation with a user suggesting a cash flow generation strategy.
On the other hand, Musk said that Twitter’s usage has gone up 3.5% week-over-week.
In mid-June, Musk announced almost all of the advertisers who had either dropped out or paused their advertising had come back to Twitter. The new CEO of Twitter, being the ex-Chairman – Global Advertising & Partnerships at NBCUniversal was also expected to revive the microblogging company’s primary source of revenue generation.
Also Read: Twitter blue creators above 5 Mn impressions to get a share of ad revenue
Although according to a recent statement by Musk, the cash flow at Twitter is still negative with a heavy debt load and a 50% drop in advertising revenue. This would also affect the creator monetization offering based on ad revenue sharing for creators. Twitter recently announced that select content creators on the social media platform will be eligible to get a part of the advertising revenue the company earns.
Meanwhile, the Twitter rival and clone of the microblogging site Threads has been on the rise, it has crossed 100 million sign-ups, and head of Instagram, Adam Mosseri has now announced that on day eight of Threads, growth, retention, and engagement are “all way ahead of where I expected us to be at this point.”
Various financial publishers have also estimated that Threads will add 8 billion in revenue for Meta over the next two years.
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Source: Social Samosa
