The end of 2022 was not very rosy for Twitter. The last month of the previous year will stay in the minds of the company’s management for a long time. In December, Twitter's revenue slumped by a record 40%. Advertisers are massively refusing to cooperate with it. In this light, the firm may face more considerable losses.
On top of that, Twitter does not publish its earnings reports regularly. The fact is that the company has the right to disclose its financial reports when it wants as it became private when Elon Musk purchased it in October 2022. Notably, the information that the company has suffered losses has not been confirmed yet. It is just an assumption made on the basis of data received from those who have access to the company’s documents, including reports prepared for investors. According to The Wall Street Journal, in December 2022, the total revenue and net profit decreased by about 40% compared to the same period last year.
Such losses could be explained by a mass outflow of large and not very big advertisers. “Multiple top advertising agencies and media buyers said that nearly all of the big brands they represent have paused spending on the social media platform, citing alarm at Musk’s ad hoc approach to policing content and decision to axe many of its ad sales team,” Financial Times wrote.
The situation is so alarming that at early this year, Twitter’s management offered companies free advertising. According to the Wall Street Journal, “the tech company is dangling free ad space by offering to match advertisers' ad spending up to $250,000.”
