Twitter's ad business is getting worse, and their daily income is said to have fallen by 40% compared to a year ago.
Quoted from Engadget, Friday (20/1/2023), since being acquired by Elon Musk, Twitter has lost 500 of their biggest advertisers, who temporarily stopped their advertising since Musk acquired Twitter last October.
These advertisers are said to have disliked Musk's approach to content moderation, including allowing Donald Trump's return to Twitter. Fortunately, Twitter is still considered attractive and can maintain advertising agreements with the mass media because it is too profitable to stop.
Currently, Twitter still has agreements with dozens of mass media, including the Wall Street Journal, Reuters, Bloomberg, Forbes, USA Today, and so on. Likewise agreements with a number of sports leagues, such as the NFL, NBA, NHL, MLB, NASCAR, and PGA Tour, which will last until mid-2023.
Musk himself is planning to diversify Twitter's revenue so it doesn't depend on advertising. However, until this plan can be achieved, it will be difficult for Twitter to get income, even difficult to cover their operational costs during 2023.
In Q1 2022 Twitter had revenue of USD 1.2 billion, if revenue fell by 40%, then their daily revenue would be around USD 8 million or around USD 720 million per quarter. Oh yes, Twitter also needs to pay interest of USD 1.5 billion every year from Musk's debt which he took to finance the acquisition of the company with the blue bird logo.
With these financial problems, Twitter will probably continue to make efficiency. So far, the number of Twitter's own employees has decreased by 75% since its acquisition, and it is not impossible that in the future there will continue to be additional layoffs to further save on their operational costs.