Elon Musk says Twitter’s ad revenue has dropped by 50 percent

Twitter is still spending more money than it’s making, according to Elon Musk. In the early hours of Saturday morning, the billionaire tweeted the company was suffering from an ongoing negative cash flow issue due to an approximately 50 percent drop in advertising revenue and heavy debt burden. “Need to reach positive cash flow before we have the luxury of anything else,” Musk said.

The admission comes in the same week that Twitter’s ad-revenue sharing program began paying out some creators, including a handful of far-right influencers. On Friday, Musk also claimed the social network could see “all-time high device user seconds usage” sometime this week. He also previously said almost all the advertisers who had left the platform following his takeover in October had “either come back” or “said they will come back.”

According to an estimate research firm Sensor Tower shared with Bloomberg, advertising spending fell by 89 percent to $7.6 million during a two-month period earlier this year. Per Reuters, Twitter has annual interest payments of about $1.5 billion due to the debt the company took on when Musk took it private for $44 billion. This is the latest sign the aggressive cost-cutting measures Musk has undertaken in the last year have not been enough to put the company on solid financial footing. It also suggests the company’s newly appointed CEO, Linda Yaccarino, has her work cut out for her as she works to rebuild Twitter’s advertising base.