The Wall Street Journal reported, citing people familiar with the matter, that Twitter posted an annual decline of 40 percent in both revenue and adjusted earnings for the month of December.
This report comes after many advertisers cut their spending on the social media platform after Elon Musk took over the company on October 27, which led to a 71 percent decrease in spending on Twitter during the month of December, according to data from research firm Standard Media Index.
Musk had warned last November of the possibility of Twitter’s bankruptcy and said in December that the company was on its way to achieving “almost the cash flow break-even point” in 2023.
Twitter made its first interest payment in January on a loan provided by the banks to help fund Billionaire Musk’s purchase of the social media company last year.
Musk’s Twitter was in disarray, with mass layoffs, the reinstatement of banned accounts, and the suspension of pages of journalists critical of the South African-born billionaire.
And last February, Musk said that closer to late 2023 it would be a “right time” to find another person to manage Twitter.