X, formerly Twitter, reported a significant decline in its advertising revenue following Elon Musk's takeover in 2022. In the second quarter of 2023, the platform generated $367 million in ad revenue, a slight increase from the previous quarter but down from $426 million in the same period last year.

This figure pales in comparison to the $1.08 billion in advertising revenue X (then Twitter) reported in the second quarter of 2022, before Musk's acquisition. X's CFO, Bret Johnsen, attributed the recent quarterly growth to an "overhauled" ad tech platform, though the ad business was only briefly mentioned during an hour-long analyst call.

The company has shifted focus towards premium subscriptions, including a tier that removes ads. Despite these changes, X has claimed that many of its top advertisers have returned, with some increasing their spending. However, advertising now represents a smaller portion of X's overall business, which also includes substantial revenue from its AI, Starlink, and space divisions.