Twitter Inc. may break even on a cash-flow basis in the second quarter and has a shot at even going positive, according to owner Elon Musk.
The company has been working on making its advertising more relevant, said Musk, speaking at a Morgan Stanley conference in San Francisco. Musk, who bought Twitter last year for $44 billion, emphasized that Twitter’s debt burden after the deal is quite high and the cost of servicing the debt is around $1.5 billion annually, about equivalent to its current cash burn rate.
With all the attention Twitter receives, it’s “startling” how little money it makes, he said, noting the opportunity.
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