Data Suggests X Could Post a Significant Loss in 2024

Recent data suggests that social media platform X, formerly known as Twitter, is on track to face significant financial losses in 2024. With projected revenues of around $2.9 billion, down from $4.4 billion in 2022, the platform is struggling to regain its footing. Much of the revenue is driven by ad sales, but subscriptions to X Premium have failed to meet Elon Musk’s initial targets. Currently, subscriptions only account for about 6% of total revenue, far from the 50% Musk had envisioned.

 

X’s financial outlook is further strained by a $1.2 billion annual debt servicing obligation, stemming from loans tied to Musk’s acquisition of the platform. Combined with declining ad revenue, the platform is left with limited options to cover its operational costs. Musk’s recent moves, including increasing API prices and selling high-value @handles, reflect attempts to diversify revenue streams.

 

Industry experts speculate that Musk’s other ventures, such as xAI, might help offset X’s financial struggles. With a $6 billion funding round secured earlier this year, xAI could potentially inject capital into X. However, cross-company financing would need regulatory approval, leaving X’s future uncertain.

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