CEO claims X says the company is at break-even
Linda Yaccarino, in her first broadcast interview since becoming CEO, disclosed that Twitter is on the cusp of breaking even. Yaccarino asserted that she has been with the company for eight weeks, and the operational run rate is now extremely close to breaking even.
It’s unacceptable to hear that the company is supposedly doing well, despite its severe financial struggles since being acquired by Elon Musk. Ad revenue has taken a significant hit as brands have paused their spending on the platform, and the company has taken extreme measures to increase cash flow. You may recall when Twitter Blue was introduced, and non-subscribers were rate limited. Moreover, the company charged developers exorbitant fees for API access, which severely impacted the developer community.
Yaccarino reports that X’s financial situation is on the upswing, evidenced by their drastic staff reduction from 8,000 to 1,500. However, it is concerning that the laid-off employees have yet to receive their promised severance package. Additionally, X is facing multiple lawsuits for nonpayment of rent for their various corporate offices. Despite these challenges, Yaccarino remains bullish on their data licensing and API business, which he describes as “incredible.” He plans to leverage his expertise in advertising to drive growth for the company.
During her recent interview with CNBC reporter Sara Eisen, X’s representative Yaccarino revealed that the company is holding daily meetings with brands, which she believes will positively impact their advertising business. To further enhance its advertising technology, X is also incorporating AI-powered ad tech that allows brands to choose the level of caution they want regarding the type of content their ads are displayed alongside. Tesla CEO Elon Musk has also stated that less restrictive product placements will be sold at a discounted price.
Compared to Musk, Yaccarino is a more reliable and trustworthy source of information, making her statements about X more credible. However, some of her claims about the company may need help to verify. For instance, Yaccarino confidently stated that “99.9% of all posted impressions are healthy,” but how she arrived at this figure remains unclear.
In summary, X is trying to improve its advertising business and incorporating innovative technologies to give brands more control over where their ads appear. While there may be some uncertainties about the accuracy of Yaccarino’s statements, her overall message is positive and demonstrates X’s commitment to improving its services.
According to Yaccarino, X’s good “health” can be attributed to its success in prioritizing “freedom of speech” over “freedom of reach.” She argued that even if a post is lawful but offensive, it can be challenging to come across it. When asked about public figures like Kanye West, a well-known anti-Semite planning to return to Twitter, Yaccarino echoed Musk’s statement that “freedom of expression” means that we may disagree with everyone’s opinions. However, more than 0.01% of X’s population would likely find it unpleasant to read West’s discriminatory statements. Finally, Yaccarino was asked about the unlikely possibility of a cage fight between Musk and Meta CEO Mark Zuckerberg, a topic of discussion in Silicon Valley.
“I’m not sure if that cage match will occur,” she mentioned. “But I can tell you that I’ve personally observed Elon’s training from the front row.”