Twitter’s boss has made it known that his company will possibly experience a burst of cash flow by next quarter even though the company has been aggressive with its cost-cutting methods.
Musk made the remark during a Mogan Stanley investors’ conference where he stated that Twitter had poorly managed to make money off its messaging service.
As part of the cost-cutting methods, the company has been able to reduce its non-debt expenditures to US$1.5b from a projected US$1.5B by reducing its cloud services bill by a whopping 40% while also losing one data center Also remember the company fired nearly half of its workforce in this regards.
A deal to finalize Twitter’s acquisition was struck around October 2022 with a fee of US$44 billion. That said, the company now has to face annual interest payments of nearly US$1.5 billion as a result of the debt it took on in the take-private deal.
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He added that Twitter has been hit by a “massive decline in advertising,” some of which he said was due to the cyclical nature of ad spending and some of which was “political.”
Since completing the acquisition, Twitter has been facing a lot of uncertainties including the Twitter Blue check which would require users to pay a US$8 monthly subscription fee.
One of the recent issues with the company is a bug that prevents thousands of users from accessing links which has led to its sixth major outage since the beginning of the year alone.
Musk said in reference to Monday’s outage that what had been intended as a small change to 1% of users ended up being a “catastrophic” change for all. He added that engineers were doing a lot of “clean up” in general of the Twitter software code.
There has been widespread skepticism about the success or failure of the brand since it was acquired by Musk. There was a mass exodus of many engineers responsible for fixing and preventing service outage
The billionaire said he expected it would take a few years to build a management team at Twitter. Musk, who has faced scrutiny from Tesla investors about the amount of time he spends running the social media platform, had previously said the end of this year would be “good timing” to find a new chief executive to run Twitter.
He also hopes to integrate some systems such as the ability for users to send money to each other with one click on the platform.
“I think it’s possible to become the biggest financial institution in the world,” he said.
Making ads more relevant on the platform is another focus for the company, he said. Some advertisers have fled Twitter due to uncertainty over how the self-described “free speech absolutist” would approach content moderation.
In the EU, the company has been advised to hire more content moderators in order to comply with the bloc’s rules and regulations according to a report by the Financial Times.
Musk said at Tuesday’s Morgan Stanley event that both Democrats and Republicans now trust Twitter to the same degree. The platform had 253 million daily active users that were “monetizable” in the fourth quarter, according to a slide displayed during the webcast.
The Tesla boss also said that Twitter earns between 5 and 6 cents every hour with users spending a combined 130 million hours of their time per day on the platform. He projected that there could in fact be an increase to 15 to 20 cents.
