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X: the social network will be profitable by 2024

Linda Yaccarino, CEO of X, asserts that the platform will be on track to become profitable by the new year.

A surprising announcement, given that the former Twitter platform struggled for 17 years to become profitable. According to Linda Yaccarino, X's massive cost-cutting and strategic focus will enable the social network to break even.

This statement was made at Vox Media's Code Conference in California, where X's CEO was the keynote speaker.

As surprising as this stance is, Musk assured Benjamin Netanyahu in an interview:

"The most important reason we're moving to a small monthly payment for using System X is that it's the only way I can think of to combat the vast armies of bots. Because a bot only costs a fraction of a cent, or a tenth of a cent, but if someone has to pay a few dollars or something, a minor amount, the effective cost of bots is very high, and we also have to find a new payment method every time there's a new bot."

The underlying message of this announcement is none other than the transformation of X into a pay platform. Through a new subscription-based business model, it is clear that X could quickly become profitable.

In this sense, Linda Yaccarino has not openly confirmed that X could indeed become pay-as-you-go for all its users. Questioned by CNBC's Julia Boorstin, and after asking for the question to be repeated, the x CEO asked if "Elon had actually said this would happen". Visible embarrassment, but no oral confirmation.

Advertisers return to X:

Linda Yaccarino claims that advertisers are returning to X. According to her, 90% of the platform's top 100 advertisers have returned to invest in advertising on X. A key factor in the platform's profitability.

X: truly profitable or a publicity stunt?

It's difficult to answer this question with any certainty. We have few reliable elements, and it's clear that we can't rely solely on the certainties of Elon Musk and his right-hand man. The only element we can analyze is the amount of money X would have to generate to stay on track, namely $600 million. Once again, this figure is particularly approximate.

In Q2 2022, X reported total sales of $1.18 billion, and costs of $1.52 billion. Personnel costs amounted to $950 million. In view of Elon Musk's downsizing in 2023, it is certain that X's costs will be significantly lower than this, reducing its profitability target. To be continued.

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