Twitter Financial Performance from Time to Time – Twitter is one of the most popular social media in the world. Most people used it to communicate with others and express their idea and criticism. Some people, public figures, and artists used Twitter to communicate and socialize with other people. Historically, this company was founded by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams on March 21st, 2006. Along with the development of the active users of Twitter, this affects the revenue and income of the company. Officially, this company has its main office in San Francisco, California, U.S. Furthermore, in 2022, Musk bought Twitter with acquisition value around $44 billion. In terms of this acquisition, Twitter’s stock was delisted from the New York Stock Exchange on November 8, 2022. Until now, Twitter is a private company.
Besides Facebook, Instagram, Pinterest, and others, Twitter still become a favorite of social media with 330 million monthly active users. Totally, the employee of Twitter is around 7,000 people across the world.
The Assets, Liabilities, and Equities of Twitter
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| Million US Dollars | Million US Dollars | Million US Dollars | |
| 2010 | 224 | 35 | 189 |
| 2011 | 720 | 87 | 633 |
| 2012 | 831 | 207 | 624 |
| 2013 | 3,366 | 416 | 2950 |
| 2014 | 5,583 | 1,956 | 3,627 |
| 2015 | 6,442 | 2,074 | 4,368 |
| 2016 | 6,870 | 2,265 | 4,605 |
| 2017 | 74,12 | 2,365 | 5,047 |
| 2018 | 10,162 | 3,356 | 6,806 |
| 2019 | 12,703 | 3,999 | 8,704 |
| 2020 | 13,379 | 5,409 | 7,970 |
| 2021 | 14,059 | 6,752 | 7,307 |
| Source : Twitter Annual Report, 2003-2021 | |||
Financially, the financial position obtained from the Balance Sheet of Twitter from 2010 to 2021 showed stable conditions. In 2010, the assets of Twitter were just 224 million US dollars, with equities being 189 million US Dollars. Meanwhile, in 2021, the assets become 14 billion US Dollars with equities becoming 7 billion US Dollars.
The Revenue and Net Income of Twitter
| Years | Revenue | Net Income / Loss |
|---|---|---|
| million US Dollars | million US Dollars | |
| 2010 | 28 | -67 |
| 2011 | 106 | -128 |
| 2012 | 316 | -79 |
| 2013 | 664 | -645 |
| 2014 | 1,403 | -577 |
| 2015 | 2,218 | -521 |
| 2016 | 2,529 | -456 |
| 2017 | 2,443 | -108 |
| 2018 | 3,042 | 1,205 |
| 2019 | 3,459 | 1,465 |
| 2020 | 3,716 | -1,135 |
| 2021 | 5,077 | -221 |
| Source : Twitter Annual Report, 2003-2021 | ||
Based on the financial performance from time to time obtained from the income statements from Twitter from 2010 to 2021, Twitter is still in the vulnerable phase. They sometimes generated profit but in the other years suffers a net loss. In 2010, Twitter generated revenue of 28 million US Dollars but suffered a net loss of around 67 million US Dollars. Meanwhile, in 2021, the revenue becomes 5 billion US Dollars and still suffered a net loss of around 221 million US Dollars. Historically, from 2010 to 2021, Twitter just generated net income in 2018 and 2019 but suffered a net loss in 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017,2020, and 2021.
As a social media company, Twitter has developed into the most valuable company in several years. Because of the significant users of Twitter from time to time, their financial performance also showed improvement. Based on the Balance sheet of Twitter from 2010 to 2021, the performance of Twitter in the Debt-to-Equity ratio (DER) and Debt-to-asset ratio can be calculated.
Financially, the average debt-to-equity ratio of Twitter is about 0.44 from 2010 to 2021. Basically, this value means that the percentage of liability is about 40% of the equity. In the other interpretation, it can be implied that every 1 US Dollar of Equity contains a liability of about 0.44 US dollars. Based on the debt-to-asset ratio (DAR), the average value of the company is about 0.29. This value means that the percentage of liability is about 29% from equity, or every one US Dollar of assets can contain 0.29 US dollars of liabilities.
Bibliography of Twitter Financial Performance from Time to Time
Twitter. 2022. Annual Report. Accessed via
https://investor.twitterinc.com/financial-information/annual-reports/default.aspx on April 4th, 2022
Wikipedia. 2022. Twitter. Accessed via https://en.wikipedia.org/wiki/Twitter on April 3rd, 2022