The revenue and profit of Twitter declined by about 40% year-on-year in December last year

According to reports, people familiar with the matter said that since Musk took over Twitter, many advertisers abandoned the social media platform, and Twitter’s revenue and adjusted revenue both declined in December. According to people familiar with the matter, Twitter said in its latest news to investors that the revenue and adjusted profit in December fell by about 40% year on year. Musk completed the acquisition of Twitter in October last year. Twitter’s financial situation is facing the challenge of high cost debt. At present, Musk is trying to stabilize the company’s financial situation. It is reported that Twitter needs to repay about $13 billion of debt, and the annual interest is estimated to exceed $1 billion. People familiar with the matter said that the company recently paid the first interest to the bank. (Wall Street Journal)

Interpretation of this information:

The message indicates that Twitter’s revenue and adjusted revenue both declined in December since Elon Musk took over the social media platform. Advertisers abandoned the platform, which caused the decline in revenue. Twitter reported that the revenue and adjusted profit in December fell by approximately 40% year on year. Musk took over Twitter in October 2021, and since then, he has been trying to stabilize the company’s financial situation. Twitter’s financial situation is currently facing the challenge of high cost debt. The company needs to repay approximately $13 billion of debt, with an estimated annual interest of over $1 billion.

The message raises several concerns about Twitter’s financial situation, which may impact the company’s future growth and sustainability. The decline in advertising revenue is a crucial issue as it affects the social media platform’s ability to generate income. This decline in revenue can be due to various reasons, including a poorly defined advertising strategy, lack of audience targeting, and competition from other social media platforms.

Another concern raised in the message is Twitter’s high cost debt. The company has a considerable debt burden that it needs to repay, with an estimated annual interest of over $1 billion. This high cost of debt indicates that Twitter’s financial situation is not very stable, and the company may struggle to generate sufficient cash flow to repay its debt obligations. While the recent interest payment may improve the company’s financial position temporarily, Twitter would need to generate substantial revenue to meet its debt obligations in the long term.

Overall, the message indicates that Twitter’s financial situation needs urgent attention. Musk needs to develop a well-defined plan to stem the decline in revenue and stabilize the company’s financial situation. This plan should address the company’s debt burden, focus on developing a strong advertising strategy, and identify new revenue streams to support the company’s growth in the future. Failure to address these issues could lead to a decline in Twitter’s market value and its ability to compete with other social media platforms.