Elon Musk-Owned Twitter’s Revenue Nosedived 40% in December As Advertisers Left, Says Report
In an update to investors, Twitter reported a 40 per cent decline (year-over-year) in both revenue and adjusted earnings for December. The company recently made a first interest payment to banks that lent $13 billion to help Musk buy Twitter.
San Francisco, March 4: Despite Elon Musk's efforts to monetise Twitter, the micro-blogging platform reported a massive 40 per cent drop in revenue and adjusted earnings for December 2022, the media reported on Saturday.
Several advertisers "ditched the social-media platform following Elon Musk's takeover", the Wall Street Journal reported, citing people familiar with the matter. Elon Musk-Owned Twitter Removes Captions From Company’s Social Audio Rooms ‘Spaces’ on iOS.
In an update to investors, Twitter reported a 40 per cent decline (year-over-year) in both revenue and adjusted earnings for December. The company recently made a first interest payment to banks that lent $13 billion to help Musk buy Twitter.
Twitter did not comment on the report. Musk had predicted in November that Twitter may go bankrupt. He fired thousands of employees and shut down offices across the world in order to cut expenditures.
The company had lost half of the top 100 advertisers in less than a month after the billionaire took office. Later, some advertisers returned to the platform. Elon Musk Switches Interest From Cryptocurrencies to Artificial Intelligence, Says 'I Used To Be in Crypto, but Now I Got Interested in AI'.
Musk said last month that Twitter will immediately begin sharing advertising revenue with creators "for ads that appear in their reply threads". The Twitter CEO apologised for showing too many irrelevant and annoying advertisements on the micro-blogging platform and said that the company is taking corrective measures to improve the algorithm.
"Sorry for showing you so many irrelevant & annoying ads on Twitter! We're taking the (obvious) corrective action of tying ads to keywords and topics in tweets, like Google does with search. This will improve contextual relevance dramatically," he had posted.
(The above story first appeared on LatestLY on Mar 04, 2023 11:14 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).