Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow.
The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”.
Ad revenue has been a contentious issue and an uphill battle for the site, after hordes of advertisers fled after Musk took over.
“It’s definitely been extremely difficult,” Musk said in Twitter Spaces livestream event Musk hosted with Robert F. Kennedy, Jr last month.
And, after its rival app, Meta’s Threads, surpassed 100 million downloads less than a week after it launched, Twitter is under increased pressure.
On Thursday, Twitter announced content creators would be able to get a slice of the site’s ad revenue, seemingly to encourage more creators to join the site.
CNN did not receive comment from Twitter. »