Elon Musk says Twitter is still losing money because advertising has halved.
In a response to a tweet offering business advice, Mr. Musk wrote on Twitter on Saturday: “We still have a negative financial flow, due to a (approximately) 50% drop in advertising revenue and a heavy indebtedness.”
“We need to achieve positive cash flow before we have the luxury of anything else,” he concluded.
Since taking over Twitter in a $44 billion deal last fall, Elon Musk has tried to reassure advertisers who worried about the ousting of senior executives, widespread layoffs and a different approach to content moderation. Some high profile users who had been banned were allowed to return to the platform.
In April, Elon Musk said most of the advertisers who left had returned and the company could turn cash flow positive in the second quarter.
In May, it hired a new CEO, Linda Yaccarino, an NBCUniversal executive with strong ties to the advertising industry.
But since then, Twitter has upset some users by imposing new limits on the number of tweets they can post in a day, and some users have complained about being kicked out of the platform. Mr Musk said the restrictions were necessary to prevent potentially valuable data from being harvested without permission.
Twitter got a new competitor this month when Facebook owner Meta launched a text-focused app, Threads, and gained tens of millions of sign-ups within days. The social network responded by threatening legal action.
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