The departure of advertisers in 2023 cost Elon Musk's X network more than a billion dollars in losses
Kyiv • UNN
Elon Musk's social network, formerly known as Twitter, is projected to lose more than a billion dollars in 2023 due to the departure of major advertisers.
The social network, formerly known as Twitter, is facing monumental losses that are expected by the end of 2023 due to the departure of a whole group of large advertisers. Bloomberg writes and UNN reports.
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According to Bloomberg's insider sources, it is predicted that this year Elon Musk's company is projected to generate about $2.5 billion in advertising revenue this year, a a "significant drop" compared to the past two years.
In the report on Platform X's 2021 revenue report states that it received $4.5 billion from advertising in 2021. There are no exact figures for the previous year, as the company stopped publicly sharing its financials after Elon Musk took it private in October 2022. Nevertheless, X reported about $2.18 billion in advertising revenue in the first six months of last year.
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According to Bloomberg, in 2023 we are already talking about a little more than $ 600 million per quarter. In general, it is projected that in 2023, the total revenue of the X network will reach about 3.4 billion US dollars, which includes subscription sales and license agreements. But, as the publication notes, in 2021, Twitter earned a total of more than $5 billion.
The source of the shortfall is not hard to find seems to be easy. The recent controversy over problematic tweets posted by by Elon Musk, some of which are considered anti-Semitic, as well as the revelation that that advertising content was alongside overtly anti-Semitic content denying the Holocaust, pro-Nazi, supremacist or xenophobic posts, led to a massive to a massive flight of major advertisers, including Disney and Apple.