It is learned that on March 4, The Wall Street Journal quoted people familiar with the matter as saying that Twitter's revenue and adjusted earnings in December fell by about 40% year-on-year.

The report comes as several advertisers cut spending on the social media platform after Elon Musk took over the company on Oct. 27. The pullback by ad giants led to a 71% drop in ad spending on Twitter in December, according to ad research firm Standard Media.

Musk warned Twitter of possible bankruptcy in November and said in December that the company was on track to be "more or less cash flow breakeven" by 2023.

He went on to say the situation was akin to a plane heading toward the ground with its "engine on fire." However, just days after making those statements, Musk said Twitter's expenses were "under control."

Twitter made its first interest payment in January on a bank loan that was made to help billionaire Elon Musk buy the social media company last year for $44 billion, backed by a group of investment firms.

As mentioned earlier, Musk's first move in taking over Twitter was to fire the entire board of directors and continue to serve as CEO and the only member of the executive committee. The next thing to do was to take Twitter off the stock market and buy the remaining shares from various investors.

In an update to investors, Twitter reported that revenue and adjusted earnings for the month fell by about 40% year-over-year, people familiar with the matter told The Wall Street Journal. The drop in revenue exacerbated already problematic economic challenges. There were also six complaints of delinquent payments.

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