Linda Yaccarino, the CEO of X Corp. (formerly Twitter), said Wednesday that the platform is nearing the break-even point in terms of its operating cash flow, and she anticipates it turning a profit early next year.
Yaccarino, who started as CEO of the Elon-Musk owned platform in June, appeared on-stage at the Code Conference in California where she faced pointed questions about repairing X's relationship with advertisers, its content moderation measures, and whether she has real sway at the company or if Musk still holds all the power.
X Corp. generates most of its revenue from advertising on the platform, which has dropped off since Musk acquired the firm last year. Data from groups like the Anti-Defamation League (whom Musk has threatened to sue) suggests harmful content has inundated X under Musk. The onslaught has turned off brands that don't want their ads appearing alongside hate speech or violent content. Musk brought on Yaccarino, an ad veteran, to win back advertisers.
On stage, Yaccarino said, "90% of the top 100 advertisers have returned to the platform in the last 12 weeks alone; about 1,500 have returned."
In explaining the company—and herself—on Wednesday, Yaccarino seemed flustered, often looking down at her hands and answering defensively.
An hour before Yaccarino's panel, Twitter's former head of trust and safety Yoel Roth made an unannounced appearance on stage in which he talked about X Corp.'s struggle to attract advertisers.
"Advertisers aren't stupid," Roth said. "For advertisers to come back to Twitter—and to be clear, that's where the money comes from—I think they're going to need evidence of progress on safety that Twitter. can't provide. They can't provide it because Twitter is less safe now than it used to be."
When asked about Roth's comments later, Yaccarino challenged his claims and said advertisers "are returning because of the power and significance of the platform, the place that X has in this world."
Under Musk's leadership, X has undergone substantial changes; it's reduced staff, cut costs, and loosened content guidelines. When it comes to the product, Musk is known to call the shots. Yet when moderator Julia Boorstin, a CNBC reporter, probed Yaccarino about her role on Wednesday, the CEO said that she and Musk discuss everything, including Musk's idea of charging users a monthly fee, and she expressed enthusiasm for Musk's involvement in product management.
"Do you think Elon brought me to the company to be the head of the advertising?" Yaccarino said. "Or do you think he brought me [on] to run the company to deliver to our users the best possible experience?"
