According to internal forecasts obtained by the New York Times, Twitter, which is owned by Elon Musk, is experiencing a significant drop in ad sales. Year over year, the company has seen a staggering 59% decrease in ad revenue, posing a serious financial challenge.

During a five-week period from April 1 to the first week of May, Twitter’s U.S. advertising revenue was only $88 million, down 59% compared to the previous year. The company consistently falls short of its weekly sales projections, sometimes by as much as 30%, indicating ongoing difficulties in attracting advertisers to the platform.

One of the major concerns for Twitter’s ad sales staff is the controversial content found on the platform, including free speech, pornography, gambling, and marijuana advertisements. This has the potential to discourage advertisers and make them reconsider their spending on Twitter. Internal presentations revealed that online gambling and fantasy sports betting companies were among the top U.S. advertisers on Twitter.

Additionally, major brands such as General Motors and Volkswagen reportedly suspended their ad spending on Twitter in response to Musk’s decision to fire executives and reinstate previously banned users. Apple, Amazon, and Disney also reduced their spending on the platform compared to the previous year.

The decline in ad sales is particularly challenging for Twitter as ads have historically accounted for 90% of its revenue. As a result, the company’s value has decreased from $44 billion to $20 billion, as stated in a leaked memo. With these pressing issues at hand, Linda Yaccarino, Twitter’s new CEO, will face the task of addressing the decline in ad sales and finding strategies to restore advertiser confidence.

Twitter’s struggle with declining ad revenue and difficulties in attracting advertisers shed light on the ongoing challenges the company faces in a highly competitive social media landscape.