- Over the weekend, Elon Musk replied to a Twitter user regarding new features for the platform, noting that it is dealing with a negative cash flow.
- According to Musk, ad revenue is down 50 percent.
- The platform is also dealing a lot of debt and it needs to address this first before new features or projects take shape.
July has not been a great month for Twitter so far. In recent weeks we have seen the social media platform make some decisions that have left users frustrated, along with a new offering from Instagram rocket in popularity in terms of account sign ups.
Now it looks like Twitter is in the red, at least according to Elon Musk, who responded to a tweet from a user regarding the creation of a team to help bring his “vision” for the platform to fruition.
In his response, Musk noted that no future, plans, features, or projects can go ahead until Twitter is in the black. Stopping it from being in such a state is the fact that ad revenue is down 50 percent, Musk pointed out, along with being saddled with existing debt that it needs to sort out too.
While it is unclear precisely what state Twitter’s ad revenue is in, ever since Musk to the reins of the company, courting advertisers has proved difficult, with several major brands choosing to pause spending on the platform as they waited to see what the future of Twitter would hold.
During a two-month long period earlier this year, the suspension of spending resulted in a drop of as much as 89 percent ad sales fall for Twitter.
The aforementioned decision taken earlier this month to rate limit tweets for non-Blue subscribers may have also exacerbated issues, as it meant that users were only able to see a certain number of tweets. This would have impacted how many ads on the platform were viewable too.
With Musk proclaiming that advertisers would come back to the platform following said suspending, it looks like Twitter will have a tougher go of things over the coming months, As such, other methods of monetising the platform remain a key priority for Musk and newly installed CEO Linda Yaccarino.