Twitter’s revenue and adjusted earnings in December decreased by approximately 40% compared to the same period last year.
Several large advertisers have ditched the microblogging site after Elon Musk’s takeover, according to people familiar with the matter.
In an update to investors, Twitter reported a decline of about 40% year-over-year in both revenue and adjusted earnings for the month.
After acquiring Twitter in October of last year, CEO Elon Musk is focused on stabilizing the company’s finances, which have been strained by costly debt. Twitter is responsible for repaying $13 billion in debt, incurred to finance the acquisition, and is expected to pay over $1 billion in interest annually.
The company recently made a first interest payment to a group of banks that lent the $13 billion, ESJ cited the people.
The world’s richest man tried to boost Twitter’s revenue by introducing subscription-based user verification last December, just two months after his acquisition.
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Twitter, a publicly traded company in December 2021, did not disclose its monthly financials. However, for the fourth quarter ending on December 31st, Twitter reported revenue of $1.57 billion and a net income of $182 million.
Elon Musk has previously said that he is expecting Twitter to break even in 2023. “Twitter still has challenges, but is now trending toward breakeven if we keep at it,” said Elon Musk in a tweet in February.
‘Twitter can’t protect you from trolls’
Twitter is no longer capable of protecting its users from trolling, state-coordinated disinformation, and child sexual exploitation following layoffs and changes, according to a BBC report.
Features intended to protect Twitter users from trolling and harassment are proving difficult to maintain amid what is described as a chaotic working environment, where Mr. Musk is shadowed by bodyguards at all times, according to the BBC, which cited current and former employees of Twitter.
According to the former head of content design, her entire team, responsible for creating safety measures such as nudge buttons, has been fired. She subsequently resigned from her position. Twitter’s internal research indicates that these safety measures previously decreased trolling by 60%.
An engineer currently employed at Twitter expressed concern that nobody is currently addressing this work, comparing the platform to a building that may appear unharmed from the outside but is burning internally.
Abuse on Twitter is getting worse
Abuse on Twitter has gotten worse, according to a BBC reporter who visited San Francisco, the home of Twitter.
“It turns out, I was right. A team from the International Center for Journalists and the University of Sheffield have been tracking the hate I receive, and their data revealed the abuse targeted at me on Twitter had more than tripled since Mr Musk took over, compared with the same period in the year before,” she wrote.
The employees are also facing challenges. An engineer said; “For someone inside, it’s like a building where all the pieces are on fire.”
At least half of Twitter’s workforce have been sacked or have chosen to leave since Musk bought the company. Now people from other teams are having to shift their focus, he said.
“A totally new person, without the expertise, is doing what used to be done by more than 20 people, that leaves room for much more risk, many more possibilities of things that can go wrong,” he said.
He believes this lack of trust is betrayed by the level of security Elon Musk surrounds himself with.
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