Twitter X. It’s a name we all know and constantly hear about, often entangled in some type of drama. Lately, however, the focus has shifted to the company’s financials and its ad revenue in particular.
According to a recent report from Bloomberg, X’s ad revenue is projected to decline to $2.5 billion by 2023. X, of course, disputes this information, claiming it is incomplete. But, truth be told, the report’s numbers align with what X’s owner stated earlier this summer.
Here on The Exchange, we examine startups, markets, and money – and today we’re taking a closer look at X. So let’s gather all of the new data, mesh it with our existing knowledge, and compare it to the company’s most recent internal valuation. We’ll also revisit our previous analysis of Snap, another social network that shares similar scale and worth to X.
The question at hand is whether or not X’s revenue and valuation are in sync, so let’s delve into the numbers!
Breaking Down the Numbers
The Bloomberg report states that X’s ad revenue hovered around “a little more than $600 million” in each of the first three quarters and is expected to stay consistent in the fourth quarter. If this holds true, X’s total revenue for the year will land between $3.2 billion and $3.4 billion, with ads accounting for “70% and 75%” of the company’s overall revenue.
So what does this all mean for X? Is this decline in ad revenue truly reflective of the company’s value?
