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Reblogged by slightlyoff@toot.cafe ("Alex Russell"):
mmasnick ("Mike Masnick ✅") wrote:

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• He said that the platform had been on course to spend about $5bn in 2023. Overall costs at Twitter in 2021, the last annual period that the company reported before being taken private, were $5.6bn, during which time it made a pre-tax loss of $221,409. Musk predicted that Twitter’s net cash outflow, “if you didn’t make any changes”, would be about $6bn to $6.5bn next year. This is partly because the company has been loaded with $12.5bn of debt to help to fund his acquisition, requiring about $1.5bn a year in annual debt servicing payments amid rising interest rates, he said. “Not good since Twitter has $1bn in cash,” he said. “So that’s why I spent the last five weeks cutting costs like crazy.” His remarks suggested the company was on track to make about $3bn in annual revenues next year. That would suggest Twitter was on course for revenues as much as $2bn lower in 2023 than the $5bn it achieved in 2021 - which mainly came from advertising. Many marketers have pulled out of the platform since Musk’s takeover over moderation concerns.