4 ms·

> Their finances were never that dire; they were profitable in 2018 and 2019. The finances of a succesful/healthy company aren't usually decribed as 'not being

• ceejayoz 4y ago
  They lost 2019s profits in 2020, and had a mildly unprofitable 2021. That isn’t unusual. It’s likely more dire now, not less. From all accounts, the savings from staff cuts have been met with lost advertising revenue, Twitter Blue hasn’t made a dent, and they’ve got big interest payments to meet.
  • Closi 4y ago
    It seems like they are on a better track to profitability if their revenue rebounds a bit - i.e. if they get up to 80% of their previous revenue they will be operating that level of revenue with underlying profitably rather than operating unprofitably at their previously larger revenue figure. IMO Twitter Blue wasn't as much about making a load of money, as it was Musk sticking a stake in the ground and saying 'We are going to change things fast and experiment with things - and I don't want sacred cows'.
    • ceejayoz 4y ago
      > if they get up to 80% of their previous revenue Again with the giant ifs.
    • sfashset 4y ago
      > It seems like they are on a better track to profitability if their revenue rebounds a bit - i.e. if they get up to 80% of their previous revenue they will be operating that level of revenue with underlying profitably rather than operating unprofitably at their previously larger revenue figure. No they won't, because there are an additional ~1.5 billion the company has to pay in interest, as a result of the takeover. Twitter has fluctuated around profitability the last few years, now they have an albatross in interest payments around their neck. The only way Musk can lead them to a "better track to profitability" is if he unlocks significantly more revenue. He's been going in the opposite direction so far.
  • adlpz 4y ago
    To be fair the lost ad revenue came before the layoffs. The rumours of the Musk takeover were enough to scare off many of the early ad space buyers.