X close to 'break even': CEO claims

Linda Yaccarino, the chief executive officer of X, formerly Twitter, has claimed that the company is very close to "break even".

This is the first time Yaccarino has spoken during her first broadcast interview after she assumed the top role at the micro-blogging website, which has witnessed a rebranding in the last few weeks, Tech Crunch reported.

Given the platform's financial woes following its acquisition by the South Africa-born American billionaire, Elon Musk, the declaration has come as a surprise as its ad revenue plummeted after brands stopped spending their money on the company.

However, X went to desperate lengths to earn more cash flow. Cases in point, when users received a rate limit for not subscribing to Twitter Blue and when the company charged the developer community exorbitant rates for API access.

But if what Yaccarino has said can be trusted, it appears X's financials are experiencing an upheaval. This is particularly significant in the wake of the company reducing its staff from nearly 8,000 to 1,500 during its layoff wave. Even though X is yet to pay the promised three-month severance pay to those impacted by the layoff.

Meanwhile, these are not the only payments that remain outstanding for the company. X is also confronted with several lawsuits for not paying rent for its numerous offices around the world.

"Our data licensing and API with X is an incredible business. Our new subscription business [is] growing. And then, part of my, what I would say, expertise and experience, and what I came to do, was to drive advertising at the company," Yaccarino said.

The X CEO added that her daily meetings with brands are encouraging for its ad revenue. Meanwhile, the company is also incorporating AI-powered ad tech to allow brands to pick what kind of content they want their ads to be placed with. Musk had earlier said, product placements that are less conservative would be sold at a discount.