The Wall Street Journal is reporting that Twitter Inc reported a drop of about 40% year-over-year in both revenue and adjusted earnings for the month of December. Which I think qualifies as being in free fall:
In an update to investors, Twitter reported a decline of about 40% year-over-year in both revenue and adjusted earnings for the month, the people said.
Chief Executive Mr. Musk, who completed his acquisition of Twitter last October, is working to stabilize the company’s finances, which also have been challenged by high-cost debt. Twitter is responsible for repaying some $13 billion of debt that helped pay for Mr. Musk’s purchase of the company, with annual interest payments estimated at more than $1 billion.
The company recently made a first interest payment to a group of banks that lent the $13 billion, the people said.
That’s two months after Elon took over at Twitter and shows that his management of Twitter isn’t producing positive results. Then there’s also this:
However, more than 70 of Twitter’s top 100 advertisers from before Mr. Musk’s takeover weren’t spending on the platform as of the week ended Feb. 25, according to an analysis from research firm Pathmatics, which is part of Sensor Tower.
That’s another sign that Elon isn’t getting the results that he’s looking for. He claims that advertisers are returning to the platform, but I take that with a grain of salt as Elon has a habit of saying stuff that never happens. I fully expect that the next story that the Wall Street Journal, Platformer, or anyone else writes about Twitter’s finances, the situation will be way worse.
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This entry was posted on March 6, 2023 at 7:11 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed.
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Twitter’s Revenue Is In Free Fall
The Wall Street Journal is reporting that Twitter Inc reported a drop of about 40% year-over-year in both revenue and adjusted earnings for the month of December. Which I think qualifies as being in free fall:
In an update to investors, Twitter reported a decline of about 40% year-over-year in both revenue and adjusted earnings for the month, the people said.
Chief Executive Mr. Musk, who completed his acquisition of Twitter last October, is working to stabilize the company’s finances, which also have been challenged by high-cost debt. Twitter is responsible for repaying some $13 billion of debt that helped pay for Mr. Musk’s purchase of the company, with annual interest payments estimated at more than $1 billion.
The company recently made a first interest payment to a group of banks that lent the $13 billion, the people said.
That’s two months after Elon took over at Twitter and shows that his management of Twitter isn’t producing positive results. Then there’s also this:
However, more than 70 of Twitter’s top 100 advertisers from before Mr. Musk’s takeover weren’t spending on the platform as of the week ended Feb. 25, according to an analysis from research firm Pathmatics, which is part of Sensor Tower.
That’s another sign that Elon isn’t getting the results that he’s looking for. He claims that advertisers are returning to the platform, but I take that with a grain of salt as Elon has a habit of saying stuff that never happens. I fully expect that the next story that the Wall Street Journal, Platformer, or anyone else writes about Twitter’s finances, the situation will be way worse.
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This entry was posted on March 6, 2023 at 7:11 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.