Despite its aim to achieve profitability next year, the company grapples with persistent challenges.
During the Vox Media Code Conference on Wednesday, Linda Yaccarino, CEO of X (formerly Twitter), said confidently that the company is on track to achieve profitability in early 2024. The optimistic outlook follows the company’s determined efforts to rebuild its reputation and regain advertisers who had previously distanced themselves due to content-related concerns.
“Now that I have immersed myself in the business, and we have a good set of eyes on what is predictable, what’s coming is that it looks like in early ’24, we will be turning a profit,” Yaccarino declared on stage at the Code Conference.
X Regains 90% of Advertisers to the Platform
If realized, this predicted financial milestone would be a significant achievement for the social media giant, which had struggled to generate annual profits during its first 13 years. Yaccarino’s positive remarks align with her consistent comments since assuming the CEO role in May.
In an August CNBC interview, she indicated that X was “approaching breakeven” in terms of operational run rate. Additionally, a leaked memo from Yaccarino in July revealed that X’s user engagement had reached an all-time high. During the Code Conference, she further stated, “90% of the top 100 advertisers have returned to the platform, and in the past 12 weeks alone, about 1,500 more have returned.”
It’s worth recalling that Yaccarino had worked at NBCUniversal as the Chief Advertising Officer before her appointment as X CEO. Billionaire tech mogul Elon Musk had expressed confidence that she would help bring back advertisers to the social media platform. This month, Musk revealed that ad revenue was down 60%.
Yaccarino: X Is a Fresh Company
Yoel Roth, the former head of trust and safety at Twitter also shared his thoughts at the Code Conference. He expressed the belief that while having Yaccarino on board is a positive development, it may have limitations in fully restoring the confidence of brands.
“Having a reasonable, tenured, well-respected executive is a good thing. But for advertisers to come back, they’re going to need evidence of progress on safety that Twitter can’t provide,” Roth emphasized.
Yaccarino responded to Roth’s comments by noting that Twitter operated under different principles during Roth’s tenure. She highlighted that X is a fresh company with a strong focus on promoting freedom of expression. Additionally, Yaccarino contested the notion that X is not welcoming to advertisers.
X Confronts Ongoing Controversies
Despite its aim to achieve profitability next year, the company grapples with persistent challenges. The social media platform recently downsized its trust, safety, and election integrity teams. Additionally, X filed a lawsuit against a research organization that found harmful content on the site.
Earlier this month, Elon Musk threatened to sue the Anti-Defamation League (ADL) for the slump in US advertising revenue.
In response to these challenges, X has proactively sought solutions to address content-related concerns. The company has collaborated with independent firms to conduct assessments of the material posted on its Platform.
Furthermore, X has strengthened its workforce by bringing in new hires across key departments, including sales, partnerships, and brand safety, all of which play vital roles in interacting directly with advertisers, as highlighted by Yaccarino.
Despite recent workforce adjustments, the company remains steadfast in its commitment to preserving the integrity of elections. The San Francisco-based firm continues to combat antisemitism actively, underscoring its dedication to fostering a secure online environment.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.