Linda Yaccarino, the Chief Executive Officer of X, is expressing confidence in the company’s profitability, projecting that it will become profitable in early 2024. Yaccarino made this announcement during an interview at the Code Conference.
The basis for this confidence in profitability lies in the fact that “90% of the top 100 advertisers have returned to the platform in the last twelve weeks alone.” It’s worth noting that several advertisers had left the platform when it was formerly known as Twitter, especially after Elon Musk took over last year. Their return to the platform signifies a notable increase in revenue for the company.
Yaccarino also pointed out that the amount of time users spend on X has been on the rise since June. This increase is likely attributed to the ad revenue sharing program, which has encouraged more users to post content on the platform in hopes of garnering views and engagements and thus a share of the ad revenue.
Back in August, Yaccarino had mentioned that the company was “pretty close to breakeven” in terms of operational run rate. She elaborated, saying, “Now that I have immersed myself in the business, and we have a good set of eyes on what is predictable, what’s coming is that it looks like in early ’24, we will be turning a profit.”
X, formerly Twitter, was acquired by Elon Musk in October of the previous year. Musk, determined to bring the company back to profitability, implemented various changes. These included introducing paid monthly subscriptions for the blue tick, offering new exclusive features, and initiating the ad revenue-sharing program, all designed to incentivize content creators to remain active on the platform.
Additionally, X reduced its expenditures by significantly downsizing its staff from 8,000 to approximately 1,500. Notably, some laid-off employees have yet to receive their severance pay.
However, despite its efforts to improve, X has faced criticism from the European Union, which accused the platform of being used by pro-Russian forces to disseminate misinformation and disinformation about the Russia-Ukraine conflict. The EU noted that such actors are more prevalent on X compared to other social networking platforms like TikTok and Facebook. X has countered these allegations, asserting that they do not reflect the platform’s data and that the company has been actively addressing misinformation through features like community notes.
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