Thursday, March 30, 2023

Musk expects Twitter to generate positive cash flow in the next quarter

Elon Musk, who bought Twitter for $44 billion last October, said Tuesday that the social network could be “cash flow positive” next quarter.

“I don’t want to be jinxed, but I think we have a chance to be cash flow positive next quarter,” the billionaire noted in an interview at a Morgan Stanley event that was broadcast online.

This change in the numbers of the platform would be due to an increase in users in the social network and a reduction in costs.

Since Musk took over, there have been massive layoffs at the company and even auctions of office supplies.

According to Musk, Twitter is the “world’s number one” news app, with 500 million active users and 250 million daily users.

“We get between 120 and 230 million hours of human care per day, on average. And what is really interesting and simply surprising is how little is monetized”, Musk stressed.

The Tesla CEO and SpaceX founder said Twitter currently earns about 5-6 cents an hour of that time and that his goal is to eventually earn 10-25 cents.

Platform failures

In this hour-long interview, Musk also talked about the problems the platform suffered this Monday when users could not see content posted on the network and explained that the service interruption occurred after they tried to make a change that should only to affect 1% of users.

“What was supposed to be a small change in 1% of the Twitter user base ended up being a catastrophic change in 100% of the main user base,” he noted, and said that this Tuesday the network will make public in more detail the reason for the failure.

Likewise, Musk explained that Twitter engineers are working to simplify the Twitter software code.


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