Twitter revenue drops 40% in December as advertisers leave: Report
Despite Elon Musk’s efforts to monetize Twitter, the microblogging platform reported a massive 40 percent drop in revenue and adjusted earnings in December 2022, media reported on Saturday.
Several advertisers “abandoned the social media platform following Elon Musk’s takeover,” the Wall Street Journal reported, citing people familiar with the matter.
In an update to investors, Twitter announced a 40 percent decline (compared to the same time of the year) in both revenue and adjusted earnings in December.
The company recently made the first interest payment to banks that lent $13 billion to help Musk buy Twitter.
Twitter did not comment on the report.
Musk predicted in November that Twitter might go bankrupt. He laid off thousands of workers and closed offices around the world to cut costs.
The company had lost half of its top 100 advertisers in less than a month after the billionaire took office. Later, some advertisers returned to the platform.
Musk said last month that Twitter would immediately begin sharing ad revenue with creators “for ads that appear in their reply threads.”
Twitter’s CEO apologized for showing too many irrelevant and annoying ads on the microblogging platform and said the company is taking corrective measures to improve its algorithm.
“Sorry for showing you so many irrelevant and annoying ads on Twitter! We’re taking an (apparent) remedial action by tying ads to keywords and topics in tweets, like Google does with search. This dramatically improves contextual relevance,” he had posted.
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