Home ยป The Ebbing Tides of Twitter: Ad Revenue Plunges by $400 Million, Leaving Merely $600 Million in Q1 [Bloomberg]

The Ebbing Tides of Twitter: Ad Revenue Plunges by $400 Million, Leaving Merely $600 Million in Q1 [Bloomberg]

According to Bloomberg, X/Twitter generated approximately $2.5 billion in advertising revenue during the first quarter of 2023. On average, X earns around $600 million in advertising revenue per quarter, which is a decrease from the previous year’s $1 billion in advertising revenue per quarter. If X can maintain these numbers in the last quarter of the year, the annual revenue will amount to approximately $3.4 billion.

Typically, advertising accounts for 70-75% of X’s total revenue, with the remaining revenue coming from subscriptions (Twitter Blue or X Premium) and the sale of data through APIs (which generated $572 million in revenue in 2021).

Before Elon Musk acquired the business, X’s total annual revenue was at $5 billion. However, during that period, the company was experiencing losses. Although Elon’s tenure saw a decrease in revenue, expenses were also significantly reduced, creating an opportunity for X to turn a profit.

TL;DR: Bloomberg reports that X/Twitter earned $2.5 billion in advertising revenue in the first quarter of 2023. The average quarterly advertising revenue for X is approximately $600 million, with the potential to reach $3.4 billion for the whole year. Advertising contributes around 70-75% of X’s revenue, with the remaining coming from subscriptions and data sales. Before Elon Musk’s involvement, X had annual revenue of $5 billion, but it was incurring losses at the time. However, Elon’s period saw both a decline in revenue and expenses, creating a potential for profitability.

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