I never bothered looking at the books once the market crashed making the bid price way too high. Honestly didn’t realize it was this fragile.
I’m now thinking this could melt down financially before it has a chance to melt down socially or politically.
Conversation
Entirely different reason to head for the exits. Has any social media thing gone bankrupt and returned?
3
1
24
Replying to
I keep wondering if the chronically online feel like this is worse than it really is and haven't looked enough into it to really know.
Seems like drama passes, media calms down, and advertisers return if there's a business case.
1
2
Replying to
50% layoffs and this balance sheet is definitely nearing fire-sale regimes. Not a drill…
Quote Tweet
Twitter cost of rev last qtr was $540m on a rev.on $1.175b. 45% of revenue. It's just an app.
2
4
Replying to
Well, that's the income statement. Their balance sheet has $7.3B in current assets, so while that burn isn't great, but they've got a long runway at $0.34B/qtr burn.
Real question is if there's a "right sized" Twitter post layoffs and how the balance of rev / exp works.
1
1
I've heard the layoffs mostly affect their US staff (ie very highly paid), so there's a world where their $1B OpEx (ie below Gr.Mgn line) could get cut a lot and the revenue down side from the advertisers is recoverable.
2
3
Generally, you cut the long-tail projects / people - ie on the edge of your proverbial IRR hurdle rate. So I'd expect them to ride this to try to find a "right size" - the question is what's the minimum viable scale for breakeven and is it too big for the short-term TAM?
1
1
I think we're entering a new kind of "Globalization 2.0" where every company going remote work is going to lead to a lot of geo labor arbitrage (& guilty party speaking).
1
2
What's interesting about remote work is not just that it puts overseas workers on a better footing with locals, but also the kind of management changes to be more numeric and independent, because of the higher costs to "yell over to the next cube".
1
1
What this means is that even with the timezone issue, asynchronous work is already on the rise within the same time zones, and it's not that bad to coordinate with Europe / Asia if they're allowed to work during the non-overlapping time.
At least this is how my company works.
1
2
Replying to
I’m skeptical. This is social consumer tech. You can outsource maintenance and basic content moderation but I’d guess the product is too culturally American for core to be made much cheaper. And the hard assets… fraction of musk’s buy price. Goodwill soft capital eroding fast.
Replying to
Yea, I'm not saying I know enough to really know, and agree that the cultural angle is real, but I'm also unsure if chronically online people everywhere can't do Twitter product, and I don't think their *old* financial statements look that crazy where collapse is imminent.
1


