Elon Musk X Holdings Corp. It develops from a social media platform whose mainstream advertising is nourished by one of the dollars obtained from artificial intelligence and orders – a change that seems to have recently increased its revenue.
Platform, previously known as Twitter Inc., posted a $ 91 million revenue related to data licensing and orders in February, 30% more than a year earlier, according to investors distributed materials related to AnewTo. Advertising revenue also increased, although with a more modest 4% clip, the materials show.
The X representative refused to comment.
This is a contrast when Musk bought X almost three years ago. The platform was stronglyconfidentIn the ads of the ordinary blue chip, but saw that such a profit decreased under his leadership, as the billionaire applied serious changes to his business model.
Advertising revenue has since stabilized, albeit at a lower level, while according to investors, data licensing and orders have increased. In the meantime, Musk's decision changed X last month with his artificial intelligence company XAI.
TwitterPosted advertising revenue of $ 4.5 billionIn 2021, his last year was a publicly traded entity before the acquisition of Musk. It is forecast to earn $ 2.26 billion this year sales of global advertising, which is 16.5%, according to Bloomberg Emarkterpreviously reportedTo.
However, if the X revenue is revenue, its costs are sharply lower and its leader is closely linked to US President Donald Trump, investors have felt more optimistic. Morgan Stanley On Thursday, launched the last bit of sales related to the Musk 2022 company 2022 after the purchase of its prospects for its prospects.
During its financial disclosure, X praised nearly $ 1.5 billion a year before interest, payment, depreciation and depreciation of the profit, known as “EBITDA” on Wall Street, known as “EBITDA”.
Its improving metrics allowed the company to raise nearly $ 900 million in the new equity round from Musk and other investors who valued $ 44 billion – with about the same estimate he bought it – Bloombergpreviously reportedTo.
Recently, according to investors, the X balance is also improved. The company now has almost $ 1.1 billion in cash, from about $ 120 million to about $ 320 million, which it maintained until January. He hopes to use some of these funds either to repay $ 12.5 billion's expensive debt or to finance financial investments and use for other purposes.
Expenditure
The debt is still considering the Musk company.
In March alone, X paid about $ 200 million in debt -related debt costs, said people who were familiar with the permission to talk publicly. Each of the company's annual interest costs by the end of 2024. The year was more than $ 1.3 billion, they added.
The offering of Morgan Stanley's debts began on Thursday, which aims to refinance the final and expensive part of X -buy -in financing, bearing a 14% interest rate. Banks market the debt with a 9.5% fixed coupon to help the company reduce the cost. X hopes to reduce its every year interest cost by $ 43 million, people said.
The X's heavy debt has been a problem not only for the company but also for the banks that helped Musk buy the company. Lenders had kept about $ 12.5 billion with this debt, could not sell it to investors only in January and February this year they off about $ 11.2 billion worthy over three salesTo.
A month ago musksaidMusk artificial intelligence startup Xai had acquired X.
Information shared by investors shows that he created a holding company, duplicated Xai Holdings, which owns both X and Xai. In earlier debt, banks and company management mentioned X relations with Musk Startupsweetenerencourage the investor's interests.
This story was originally reflected Fortune.com
