Elon Musk’s X India struggles with a 90% decline in revenue in FY24

India is one of the biggest markets for X (formerly Twitter) in terms of users but the company appears to be struggling to monetize after its takeover by Elon Musk. X India’s revenue plunged nearly 90% in the fiscal year ending March 2024 whereas its profit nosedived 94% in this period.

X India has reported Rs 21.16 crore in revenue in FY24 as compared to Rs 207.70 crore in FY23, according to its standalone financial statements.

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).

While the company has not disclosed any reason for the huge drop in scale, the significant decline is likely attributed to the company's 90% layoffs in November 2022, which hampered operations and led to a reduction in expenses. As a result, employee benefits expenses also dropped drastically from Rs 130.10 crore in FY23 to Rs 6.20 crore in FY24, reflecting the impact of the layoffs on the company's workforce.

Depreciation and amortization expenses also slightly declined, standing at Rs 7.16 crore in FY24 compared to Rs 7.96 crore in the previous fiscal year. Similarly, other expenses reduced significantly, coming in at Rs 5.38 crore in FY24, down from Rs 30.19 crore in FY23.

Despite these reductions in revenue and expenses, X India reported a profit before tax of Rs 2.42 crore in FY24 against Rs 39.43 crore profit it posted in FY23. After accounting for taxes, X India’s net profit stood at Rs 3.18 crore in the last fiscal year.

X India's net worth increased slightly to Rs 61.05 crore in FY24. However, current liabilities saw a substantial drop to Rs 25.55 crore in FY24, down from Rs 77.13 crore in FY23. The company’s cash reserves also decreased significantly to Rs 19.88 crore in FY24.

After Musk took a knife to costs, it is always predicted that X (Twitter) India would be reduced to an outpost for Twitter, with the focus on the US business under Musk. That is how it has played out. The only saving grace has been that the company’s run-in with the government have also seemed to go down significantly post the Musk takeover, unlike in markets like Brazil where it has just emerged from a bruising battle with the judiciary there. 

The changed media landscape in India also continues to whittle down the relevance of X by most accounts, with Youtube gaining share from almost all media categories. For now, there seems no deliverance from the slide in revenues. While oblivion can safely be ruled out for now, X doesn’t even look like its trying for now.