- Twitter revenues fell about 40% in December versus the identical month in 2021, per Wall Road Journal.
- The slide got here after many advertisers slashed spending following Elon Musk’s takeover final October.
Twitter’s revenues plunged in December after advertisers averted the social media platform within the wake of Elon Musk’s controversial takeover, The Wall Street Journal reported.
Unnamed sources stated the corporate reported a 40% decline in each complete income and adjusted earnings in contrast with December 2021.
That got here after half of Twitter’s top 100 advertisers pulled out within the first month after Musk’s controversial takeover, per Media Issues. Greater than two thirds of Twitter’s prime 100 advertisers earlier than the acquisition had not returned by late February, based on Pathmatics, The Journal reported.
Twitter has tried to lure advertisers again by taking steps together with lifting its three-year ban on political advertising.
Some massive names together with Apple and Amazon have returned to the platform, however they’re once more below menace because of Twitter’s controversial cost-cutting methods.
Twitter has not made payments to sure suppliers, a few of that are additionally the platform’s largest advertisers, The Information reported. Workers had been lately instructed that Amazon had threatened to withhold cost for its advertisements as a result of Twitter had not paid its Amazon Internet Companies invoice for a number of months, per the report.
Twitter’s monetary challenges transcend advertisers. It additionally made its first curiosity cost on the $13 billion loan that helped fund Musk’s $44 billion takeover final October, per The Journal. Annual curiosity funds are anticipated to exceed $1 billion on loans which have charges as excessive as 15%.
Confronted with faltering promoting spend, Musk has tried to bolster revenues by selling Twitter Blue, its paid subscription product, and monetize various options.
Twitter Blue, launched final November, permits customers to pay between $8 and $11 a month for the blue checkmarks that had been beforehand reserved for high-profile figures. In its newest push for subscriptions, Twitter stated it was restricting the use of text messages for two-factor authentication to paying subscribers.
Twitter didn’t instantly reply to a request for remark from Insider made outdoors regular working hours.