The Chief Executive Officer of X, Linda Yaccarino is confident that the company will become profitable in early 2024.
Yaccarino stated this in an interview at the Code Conference.
- “The confidence in profitability is hinged on the disclosure that “90% of the top 100 advertisers have returned to the platform in the last twelve weeks alone.”
Several advertisers were reported to have left the platform formerly known as Twitter as Elon Musk took over last year. Their return means an increase in revenue for the company.
She added that the time users spend on X has gone up since June, apparently as a result of the ad revenue sharing program which has more users posting on the platform to drive views and engagements in order to have a share of the ad revenue.
Earlier in August, Yaccarino had also stated that the company was “pretty close to breakeven” in terms of operational run rate.
- “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,” Yaccarino said.
The profitability journey
X, formerly Twitter, was acquired by Elon Musk in October last year. The billionaire has since been doing everything possible to bring the company, which he said was on the verge of bankruptcy, to profitability.
Part of the new changes introduced by Musk was the paid monthly subscriptions for the blue tick with new exclusive features and ad revenue-sharing program, which encourage content creators to remain on the platform.
X also reduced its spending by cutting the size of its staff from 8,000 to about 1,500; further, laid-off employees still have not been paid severance.
Misinformation concern on X
With the increase in users on the platform, the European Union earlier this week accused X of being used by pro-Russian forces to push misinformation and disinformation about the ongoing Russia-Ukraine war.
The EU said these actors are more in number on X compared with other social networking platforms such as TikTok, and Facebook, among others.
The company has, however, debunked the claim saying the EU’s position is not a reflection of its data. X said it has also been addressing misinformation on its platform through its community notes feature.