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Elon reported that Twitter has now been able to cut down its non-debt expenditures to $1.5 billion from a projected $4.5 billion in 2023
Speaking at the Morgan Stanley (MS.N) investor conference, Elon Musk said that Twitter might have “a shot” at becoming cash flow positive next quarter. This is because, soon after acquiring the social platform, CEO Musk has been aggressively cutting down costs and is finding new ways to increase Twitter’s revenue.
During the Morgan Stanley webcast, Twitter CEO Musk also went into some great details about cost management. He made a comment saying that it was “startling”, when he saw how poorly Twitter’s old bosses managed to make money off their platform.
According to Musk, he and his Twitter team has now managed to cut down the company’s non-debt expenditures to $1.5 billion from a projected $4.5 billion in 2023. This massive expenditure cut was achieved by cutting down Twitter’s cloud service bill by 40%, closing down a data center and reducing the overall employee headcount.
Talking about revenue sources in his address, Musk said that the platform has been suffering from a “massive decline in advertising”, which is one of the biggest revenue sources for the platform. Musk said that a major reason for this decline is the fact that ad spending is usually cyclical in nature.
Talking about the frequent Twitter outages in the few months, the billionaire CEO said that they are happening because a lot of engineers are currently performing a “clean up” in the Twitter’s software code.
According to Musk, Twitter currently earns 5 to 6 cents per hour, with users spending “130 million hours per day”. Musk claims that this number can go up to 15 to 20 cents.
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