For X (formerly Twitter), India is one of the biggest markets in terms of users. However, the company appears to be stagnant when it comes to monetizing after its takeover by Elon Musk. X India’s revenue plunged nearly 90% in the fiscal year ending March 2024 while its profit severely plunged by 94 percent in the same period.
As per its standalone financial statements, X India only reported Rs 21.16 crore in revenue in FY24. And if we look at FY23, the revenue was Rs 207.70 crore in FY23. X India's revenue from marketing support, research & development, and user support services plummeted by 95%, 85.6%, and 89%, respectively, during the last fiscal year (FY24).
However, the company has still not disclosed any reason for the huge drop in scale. This significant decline is likely attributed to the company's 90 percent layoffs in November 2022. This move greatly hampered operations, leading to a reduction in expenses. And due to this, employee benefits expenses also dropped drastically to Rs 6.20 crore in FY24 from Rs 130.10 crore in FY23. This also reflected the impact of the layoffs on the company's workforce.
Furthermore, expenses pertaining to depreciation and amortization also slightly declined, from Rs 7.96 crore in the previous fiscal year to standing at Rs 7.16 crore in FY24. Consecutively, other expenses reduced significantly,down from Rs 30.19 crore in FY23 to Rs 5.38 crore in FY24.
X India reported a profit before tax of Rs 2.42 crore in FY24 against Rs 39.43 crore profit it posted in FY23 despite these reductions in revenue and expenses. Also, X India’s net profit stood at Rs 3.18 crore in the last fiscal year, after accounting for taxes.
X India's net worth increased slightly to Rs 61.05 crore in FY24. Having said so, current liabilities saw a substantial drop down from Rs 77.13 crore in FY23 to Rs 25.55 crore in FY24. Furthemore, the company’s cash reserves have also dwindled significantly and stood at Rs 19.88 crore in FY24.
With the focus on the US business under Musk, it was evident that X (Twitter) India would be reduced to an outpost for Twitter. And that is how it has played out today.
Post the Elon Musk takeover, the only saving grace has been that the company’s run-in with the government have also seemed to go down significantly. While, if we look at the markets like Brazil, it has just emerged from a bruising battle with the judiciary there.
Another factor would be the changing media landscape in India which is also continuously whittling down the relevance of X by most accounts. Today, Youtube is gaining share from almost all media categories. Looking at the current juncture, there seems no deliverance from the slide in revenues.
