Linda Yaccarino (CEO of X Corp., formerly Twitter) said that the platform was nearing break-even in terms of operating cash flow and that she expects it to turn a profit by early next year.
Yaccarino was on stage at the Code Conference in California, where she answered pointed questions regarding X’s relationship with advertisers, content moderation, and whether she had any absolute sway in the company.
X Corp.’s revenue is primarily derived from advertising, and this has decreased since Musk bought the company last year.
According to data from organizations like the Anti-Defamation League (whom Musk threatened to sue ), harmful content has been flooding X since Musk acquired it. This onslaught of hate speech and violent content has scared off advertisers who don’t want to have their ads appear alongside them. Musk hired Yaccarino to help win back advertisers.
Yaccarino stated that “90% (or about 1,500) of the top 100 advertisers returned to the platform within the last 12 weeks.”
Yaccarino appeared flustered on Wednesday as she explained the company and herself, frequently looking down at her hands while answering.
Yoel Roth, Twitter’s former director of trust and security, appeared unannounced on stage an hour before Yaccarino’s panel. He spoke about X Corp.’s struggles to attract advertisers.
Roth stated that advertisers are savvy. For advertisers to return to Twitter – and to be clear, this is where the money comes from – they will need to see evidence that Twitter has made progress in terms of safety.
Twitter is no longer as safe as it once was
Yaccarino, when asked later about Roth’s remarks, challenged Roth’s claims and stated that advertisers “are returning due to the power and importance of the platform, and the place X holds in this world.”
Musk has led X to undergo significant changes.
It’s cut staff, reduced costs, and loosened guidelines for content. Musk is well-known for making decisions when it comes to product development. When CNBC reporter Julia Boorstin asked Yaccarino on Wednesday about her role, the CEO replied that Musk and she discussed everything.
It includes Musk’s idea to charge users a monthly subscription fee. She also expressed excitement for Musk’s involvement with product management.
Yaccarino asked, “Do you believe Elon brought me into the company as the head of advertising?” “Or do you think that he hired me to run the business to give our users the best experience possible?” Yaccarino asked.