Elon Musk X’s ad revenue is reportedly almost $1B down compared to last year

Insiders familiar with the numbers claim that X made over $600 million in advertising revenue in each of the first three quarters of the year, and it expects to do the same in the last quarter, according to Fortune. However, in 2022, the company surpassed $1 billion in revenue every quarter. This suggests that X is only projected to generate $2.5 billion in ad revenue for the entire year.

Two individuals with knowledge of the situation have indicated that ad sales currently account for between 70% and 75% of X's overall revenue. This implies that, including sales from subscriptions and data licensing agreements, total sales in 2023 would be close to $3.4 billion.

Despite an initial revenue target of $3 billion from advertising and subscriptions in 2023, X executives have acknowledged that they will not reach that mark. As the holiday quarter has not yet ended, the final annual figure remains subject to change.

X's primary source of revenue has historically been advertising, but since Musk took over the company, that stream of income has been on the decline. Musk has acknowledged the significant decrease in ad sales, stating in March that revenue was down "roughly 50%." He reiterated this claim in mid-July on Twitter without providing an exact date. In September, Musk further acknowledged that US ad revenue had decreased by 60%, attributing the decline to activists persuading advertisers to stop investing in the service.

Although X (formerly known as Twitter) did not turn a profit when Musk took over, the company generated over $5 billion in sales the year before Musk bought it. Twitter executives, led by CEO Jack Dorsey at the time, announced in early 2021 that the company aimed to generate $7.5 billion in revenue by the end of 2023.

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