July 15 (Reuters) - Twitter's cash flow remains negative because of a nearly 50% drop in advertising revenue and a heavy debt load, Elon Musk said on Saturday, falling short of his expectation in March that Twitter could reach cash flow positive by June.
"Need to reach positive cash flow before we have the luxury of anything else," Musk said in a tweet replying to suggestions on recapitalization.
It is unclear what time frame Musk was referring to by the 50% drop in ad revenue.
He has said Twitter was on track to post $3 billion in revenue in 2023, down from $5.1 billion in 2021.
On Thursday, Twitter said that select content creators will be eligible to get a part of the ad revenue the company earns in an attempt to draw more content creators to the site.
Persons:
Elon Musk, Musk, Twitter, Linda Yaccarino, NBCUniversal, Yaccarino, Jahnavi, Grant McCool
Organizations:
Twitter, Musk, BBC, Thomson
Locations:
Bengaluru