Twitter on Track to Break Even Financially in 2023, Elon Musk Says

Twitter Elon Musk tweeted that the company is on track to financial breakeven this year as it implements several measures in order to increase declining revenues.

The comment followed a December 2022 statement by Musk that he was optimistic about the company’s cash flow this year.

“Last 3 months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla & SpaceX duties. Wouldn’t wish that pain on anyone,” Musk Submitted. “Twitter still has challenges, but is now trending to breakeven if we keep at it. Public support is much appreciated!”

Musk stated that Twitter lost more than $4,000,000 per day in November 2022. This was the reason Musk laid off large numbers of employees in October 2022. He also cut many corporate perks such as free lunches and home internet, daycare, wellness programs, training and development, and other perks to reduce costs.

Musk disclosed that the company was heading toward negative cash flow of $3B per year when he bought Twitter in October 2022 for $44B.

That’s why he was “cutting costs like crazy,” Musk claimed. Musk expressed hope for 2023 that the billionaire entrepreneur would be able to realize his vision of the future.https://www.theepochtimes.com/elon-musk-optimistic-twitter-will-be-cash-flow-break-even-in-2023_4940592.html”>company’s Financials would be a turning point For the better.

“With the changes that we’re making here on massively reducing the burn rate and building subscriber revenue, I now think that Twitter will, in fact, be OK next year,” Musk stated. “I think we will be roughly cash-flow break-even. That’s what I expect for next year.”

Revenue drops

Standard Media Index data indicates that Twitter’s advertising budget is $2.2 billion. Dropped by 71 Percent December 2022. Musk earlier blamed “activist groups” The revenue decline.

“Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists. Extremely messed up! They’re trying to destroy free speech in America,” Musk stated this in a tweet on Nov. 4, 2022.

Twitter has introduced several new incentives for advertisers to include free ads and greater control over ad positioning.

Twitter has also dramatically reduced its workforce to lower costs. The company employed approximately 7,500 people when Musk took control. Musk tweeted Jan. 21 that there were approximately 2,300 employees who were actively working for the company.

Boosting Revenues

Musk launched a paid-in subscription program called “Twitter Blue” It adds a checkmark to an account. This gives users additional features such as the ability to edit tweets in a 30 minute window, use custom icons for apps, bookmark tweets into specific folders, and so forth.

Twitter Blue costs $8 per month for Web users in the United States and $11 per for Android and iOS users.

Twitter indicated that it would start charging developers for access to its Application Programming Interface. This API is used by developers to create third-party applications. Developers could access the API at their own risk.

The free access will end on February 9.

“Free API is being abused badly right now by bot scammers & opinion manipulators. There’s no verification process or cost, so easy to spin up 100k bots to do bad things. Just ~$100/month for API access with ID verification will clean things up greatly,” Musk wrote the following in a February 3 tweet.

In January, Twitter auctioned off dozens of appliances, furniture, memorabilia, and other items from the company’s headquarters in San Francisco.

Andrew Moran contributed to the report.