As Twitter continues to face the effects of a declining advertising market, CEO Elon Musk offered a glimmer of hope at a recent Morgan Stanley conference, saying that the company has a “shot” to become cash flow-positive in the second quarter of 2023.
The news comes despite Twitter’s monetary issues over the past few months. Musk has spoken out about the difficulty of monetizing Twitter, noting that the platform only earns 5 to 6 cents per hour, despite users spending a total of 130 million hours on the platform every day.
In an effort to improve cash flow, Musk and the Twitter team have implemented various measures. These include cutting non-debt expenditures down to $1.5 billion from an original projection of $4.5 billion for this year, as well as launching the “Blue” subscription in November, which lets users pay $8 per month for extra security verification and other benefits.
Though it remains to be seen if Twitter will become cash flow-positive in the next quarter, Musk’s track record in the financial sector could prove helpful in turning the tide for the company. He has also stated that he plans to step down as CEO at the end of the year, and is currently searching for a replacement.
In any case, it will be interesting to see how Twitter fares in the next few months. With Musk’s optimism and initiatives to monetize the platform, the company could very well become cash flow-positive in the second quarter. Even if that does not come to pass, Twitter may still be able to make improvements that could help it weather the storm of declining advertising revenues.
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