New insights Suggest X is Struggling to Make Money

Although the public passage against the Elona Musk project was significant, especially after the US election, the latest financial data of the company shows that X still brings money, and has had a better revenue than expected in the revenue in the Christmas period.

What is good news for the application, but the bad news is that X will still publish loss throughout the year due to its debt x load.

According to the new report from BloombergSome of the banks who have borrowed the musk money to finance his Twitter purchase now want to transfer that debt. And in these negotiations, they shared an insight into X’s current financial situation.

Per Bloomberg::

“The debt is located with a series of finances showing approximately $ 1.2 billion adapted to earnings before interest, tax, depreciation and depreciation of 2024, according to people who are familiar with this question. This includes about $ 400 million EBITDA at 710 million Dollars of revenue in the last three months of the year, which is an increase compared to two previous quarters that indicate the election choice for the social media platform. “

Bloomberg says that $ 1.2 billion is about “roughly flat” from the period before Elon acquired the app.

What is good news for X, because the advertiser’s exodus no longer announces his earnings. But here is a key provision, which is also an interest that X also has to pay for the debt that Musk has taken over to buy an application.

As part of the takeover of these loans, Musk also filled x with a cumulative cargo burden About $ 1.2 billion to pay interest per year. This is exactly the amount that Bloomberg’s reporting suggests that the company has brought, and as Bloomberg notes, this figure is before interest.

Which probably suggests that X did not earn money at all in 2024. Even with musk Removing 80% of your staffand reduction of costs wherever it can.

This does not leave much space to improve X, except for simply selling more ads, which, because of the Musk division, remains difficult to sell for many brands.

Although this is allegedly what Musk pushed it, Recent reports suggesting that Musk sought to motivate the XA staff to do more, noting in a recent email on all sides that “The growth of users stagnates, the income is unymparative and we barely break. “

This is aligned with the above notes on the X finances, although I am musk denies that he has ever sent this message.

No matter what is true on that front, it seems that the essence of that message is correct, with the x still sitting 250 million daily active usersWhere it has been since November 2022, and its extended revenues, such as the X Premium, fails to capture any significant way.

Perhaps, now that Trump is in power, by submitting his support among American citizens, which could open up more platform options, while Elon is still involved in other elections and political movements, which could also be used for X.

Although it can have the opposite effect, and it is currently difficult to see any direct path that the X excavation from a significant financial hole in which it is found.

Is that really important?

I mean, Elon is the richest man in the world, he can certainly keep X from his own bat, if he really wants it. Right?

This is true, but he also has investment partners, while even so much of his own money, a male still needs X to eventually stand alone.

There are options that Musk might explore to get x more means, including the flow of money from its XAI project Return to the app (given that X is a key source of data).

But for x, limited performance data we have do not look great, even with a slight improvement of its wealth by the end of 2024.