Let's assume we can trust these numbers. The user count is not material for a site that has already scaled and monetized, so focus on the actual money changing hands.
That is obviously in decline but does alone not capture how much worse off the company is today than before the acquisition. In 2022, the company did $4.4B in revenue and had negligible debt. In 2023, the company possibly had debt service payments in the range of $1.2B for the year. If you back out the mandatory debt service, 2023 looks more like $2B in topline.
Put another way: Twitter 2022 was significantly more capital-efficient than Twitter 2024.
Similarly, one can run a simple model of the value of the company now. Once you include the $13B in outstanding debt, you will end up with a negative number.
The linked article doesn’t seem to say anything about growth in revenue numbers - but it does say overall revenue has dropped 50% since Musks takeover. The quarterly chart doesn’t look great either.
Further, the brand has been tainted and Threads was allowed to pop up. Now threads is around 1/4 to 1/3 the size of Twitter MAU. It may not have replaced Twitter, but the door has been opened and that seems like an unforced error.
This election season looks poised to further drive long term disengagement as the platform is going to be very toxic and very unmoderated.
Otoh, profit might actually be up - if revenues are down 50% but costs down 80%, it may make more money. I suspect, like other private equity investments, this will not work for too long. With how much Musk has put his personal brand onto the site, it may also be difficult to unload the pieces at a profit as per the normal PE playbook.
> Threads was allowed to pop up. Now threads is around 1/4 to 1/3 the size of Twitter MAU
Main thing I consume on X nowadays is space journalism. Plenty of big name space journalists seriously posting on X (e.g. Jeff Foust, Eric Berger). I had a look at Threads, I can't find any of that content, mostly just people posting silly memes and mind-numbingly misinformed takes on the topic, at best people just reposting stuff that you'll already find better coverage of on X.
> This election season looks poised to further drive long term disengagement as the platform is going to be very toxic and very unmoderated.
I don't find much "toxic" on X. If you only read stuff posted by people you follow, and are selective in who you follow, you can have a pretty curated experience.
Don't forget the peak happened during COVID- where it is at now isn't really much different than where it was before, if the numbers are accurate anyway.
The brand was never not tainted. Twitter has long been known as one of the cesspools of the Internet, actively contributing to the degradation of the social fabric. It would be a great blessing if Elon did actually kill it the way his detractors predicted. Twitter delenda est.
Look at the revenues per quarter. It was growing in 2023, but declined in the first quarter of 2024, but I wouldn't say you can make conclusions for 2024 from one quarter.
No one is comparing year over year, there's been barely a year since the acquisition. I said the "arrow" over the latest few quarters was generally UP, in response to a mistaken argument that Twitter/X has collapsed. I am not trying to say Elon is great or something like that, I am making an observation of what the charts say, that's all. I don't know if the charts are 100% accurate, but I have no reason to doubt either... Why anything that may be positive about X is so controversial, even something as uncontroversial as the direction of an arrow on a damn graph? People seem to lose all rationality over this guy, what the hell is going on?! Do you actually have figures showing completely different results?? IF no, why all of a sudden people are so completely skeptical of it?! Sounds like discussions about climate change: someone shows a chart with temperatures way up, all of a sudden everyone is an expert and points out it was higher 60 million years ago or whatever, or the data cannot be fully trusted because they learned in high school that these are just estimates or other crap on the same vein. It's embarrassing for the human race.
The point has nothing to do with Elon. It's just the correct way to analyze revenue graphs due to seasonality. Whether or not X is "collapsing" isn't obvious from the graphs either, and I made no such claim. We'd need to know other things that aren't public, and it's probably too early to tell anyway. But it's incorrect to say that revenue is growing. It's down quarterly YoY, which is the only real meaningful way to look at it.
Further, everything after Musk bought it is just a guess. Without public audited numbers, who knows what is going on. If I had to bet, I would guess the numbers are even lower than estimated - if things were hunky dory, I doubt they would be suing their customers (advertisers).
