X Sees Over 50% Drop in US Revenue

It’s been almost two years since Elon Musk bought X, formerly Twitter, for $44 billion — and so much has happened since — but X appears ever farther from profitability.

Recent internal documents obtained by The New York Times reveal that in the second quarter of 2024, X’s US revenue dropped to $114 million, marking a 25% decline from the first quarter and a staggering 53% decrease compared to the previous year. 

The company aims to reach $190 million in US revenue for the third quarter, bolstered by advertising associated with major events like the Olympics and political campaigns. However, even if this target is met, it would still represent a 25% decrease from the same period last year.

In 2022, before Musk’s acquisition, Twitter generated $4.4 billion in revenue. This declined to approximately $3.4 billion in 2023, Musk’s first year at the helm.

While X has significantly reduced operating costs by cutting around 80% of its staff, the company is currently straddled with an additional annual burden of $1.2 billion in debt servicing costs resulting from Musk’s $44 billion purchase.

Historically, Twitter derived about 50% of its revenue from US users. Assuming this ratio still holds, X’s total global revenue for Q2 2023 could be estimated at around $230 million. This represents a continuation of the downward trend observed in Q1, which likely saw total revenue of about $287 million.

It’s not clear whether it’s because Musk told advertisers to go f*ck themselves, or if it’s because the platform is increasingly turning into an unmoderated, possibly censored (or manually promoted, depending on where you stand) cesspool, but X is in a bad financial place and there’s no light at the end of the tunnel yet in sight. 


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Gold’s Wild Bull Run: Are Markets About to Break? | Mike McGlone

First Majestic Silver: The Santa Elena Mine

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Twitter Will Start Charging For Its API Next Week And People Are Furious

In search of new revenue streams to help recoup the 40% year-on-year loss since new...

Friday, February 3, 2023, 11:17:00 AM

Elon Musk Reports Additional US$7.14 Billion In Commitments Related To Twitter Takeover

In a show of financial might, Tesla CEO Elon Musk filed a report with the...

Thursday, May 5, 2022, 11:25:00 AM

Is Twitter Broke? (Part 2)

Elon Musk recently revealed that Twitter’s cashflow remains in the negative territory due to a...

Monday, July 17, 2023, 03:46:00 PM

Elon Musk’s Twitter Obsession Is Hurting Tesla; Stock Has Been Taken Off Wedbush’s ‘Best Ideas’ List

Elon Musk’s role as the new owner of Twitter is getting in the way of...

Sunday, November 13, 2022, 01:17:00 PM

Musk’s Federal Worker Ultimatum Backfires as Agencies Assert Authority

Top national security agencies have defied Elon Musk’s bid to force federal workers to justify...

Monday, February 24, 2025, 07:33:30 AM