After a tumultuous 4 months beneath Elon Musk’s possession, Twitter Inc. is near being cash-flow optimistic, the billionaire claimed Tuesday.
Speaking at a Morgan Stanley convention in San Francisco, Musk stated Twitter may break even on a cash-flow foundation within the second quarter, and there’s an opportunity it may even be cash-flow optimistic.
“It’s been a very difficult four months, but I’m optimistic about the future,” Musk stated, including “I definitely don’t want to count chickens before they hatch.”
Also learn: Elon Musk apologizes after taunting laid-off Twitter worker with incapacity
Musk’s $44 billion acquisition of Twitter was finalized final October, and he proceeded to slash prices at each stage, together with huge layoffs. Among his cost-saving strikes was apparently not paying lease on some Twitter workplaces and never paying payments; as of final month, 9 lawsuits declare Twitter owes no less than $14 million in missed funds.
Twitter nonetheless faces severe challenges. Last week the corporate reported its advert income plunged 40% in December, in line with the Wall Street Journal, and the service has been stricken by high-profile technical glitches and outages in current months.
Musk has stated Twitter was on observe to be about $3 billion within the pink after he took over. Twitter additionally faces about $1.5 billion in annual curiosity funds on the $13 billion in debt borrowed when Musk took the corporate personal final 12 months.
Musk stated Tuesday it was “startling” how little cash Twitter makes, although “I think the potential here for Twitter revenue is gigantic.”
Source web site: www.marketwatch.com
