Tesla CEO Elon Musk said Twitter could break even in the second quarter of this year as cash flow improves.
On the 7th (local time) Financial Times (FT). According to the Wall Street Journal (WSJ), Musk attended an online event hosted by investment bank Morgan Stanley and said, “It was a very difficult four months, but I am optimistic about the future.”
He said Twitter could cut its cloud costs by 40% and shut down one data center, reducing its spending this year to $1.5 billion from its forecast of $4.5 billion.
Musk said Twitter owes $1.5 billion a year in interest. Earlier, Musk took out a $13 billion (about 17 trillion won) loan to finance the $44 billion (about 58 trillion won) acquisition.
Twitter users are also increasing. He emphasized that the number of daily active users (DAU) that can be monetized is 253 million, the highest ever.
However, it was acknowledged that advertising has decreased. As for the reason for the decrease in advertising, he argued that there were political reasons, even though it was “a matter of the business cycle.”
“The potential for Twitter monetization is huge,” Musk said.
Previously, during a first meeting with Twitter employees, Musk had publicly stated that the company might go bankrupt.
Since then, Musk has pushed for massive job cuts several times, including laying off half of its 7,500 employees. In addition, in order to save costs, the contract with a service company that cleans the building was terminated, and a blue bird sculpture, which is the symbol of the company, was put up for auction.
Musk claims he has significantly improved Twitter’s financial position by cutting costs. He said he could reach breakeven this year.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.