11:45 - 17.07.2023

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July 17, Fineko/abc.az. Twitter's cash flow remains negative because of an almost 50% drop in advertising revenue and a large debt load, which does not meet Elon Musk's expectations.

ABC.AZ reports that after laying off thousands of employees and reducing costs for cloud services, the new owner said that the company had reduced its short-term expenses to $1.5 bn from the projected $4.5 bn in 2023.

However, aggressive cost-cutting measures after Musk acquired Twitter in October were not enough to generate positive cash flow.

"Twitter's cash flow is still negative as advertising revenue has fallen by 50%. We need to achieve a positive cash flow before we have the luxury of something else," Musk said.

The company's newly appointed CEO, Linda Iaccarino, told investors that Twitter plans to focus on partnerships with video, authors and commerce, and is also negotiating with politicians and the entertainment industry, payment services and publishers of news and media.

Earlier, Twitter stated that selected content creators will be entitled to receive a portion of the advertising revenue that the company earns by trying to attract more content creators to the site.