[CaptainFever]

I was curious if this is true or not. Found this: https://www.investing.com/academy/statistics/twitter-facts-s... which came from before Twitter went private. It's technically correct that they did make a profit (e.g. 2022 Q1), but also made a lot of loss (e.g. 2022 Q2).

Comparatively, it's hard to find information about Twitter now. Most news articles mocks the revenue, but has no information about profit. However, given that Elon said Twitter "will be" profitable in 2024, I think it's safe to assume it isn't profitable yet?

This surprises me, I thought it became profitable from cutting expenses, but the truth is complicated. It used to be both profitable and not profitable at the same time (see the first link), but now it's mostly not profitable.

[jeroenhd]

The massive debt Elon has set Twitter up with is probably driving their current losses. Advertisers wanting nothing to do with him after telling them to fuck off is one thing, but the interest on those billions of borrowed money aren't cheap to hold on to.

What also doesn't help Twitter's case is that employees are still fighting to get paid their severance fees. That's a couple hundred million dollars that Elon probably assumes he doesn't need to pay. Other fees on the order of tens of millions of dollars also include the rent that Elon decided he doesn't need to pay, as well as a bunch of other bunch of unpaid stuff.

My guess is that Twitter is banking on not having to pay all of its debts at once, slowly building up a profit and regaining its value so it can have the cashflow to pay back its arrears later, but that's a risky move that may lead to a debt spiral or bankruptcy.

[saagarjha]

Elon made substantial cuts but he has debt servicing that itself is a very large cost.