Net Profit Margin
since 2013
Calculation
Twitter Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -4.36% | = | 100 | × | (221,409) | ÷ | 5,077,482) |
| Dec 31, 2020 | -30.56% | = | 100 | × | (1,135,626) | ÷ | 3,716,349) |
| Dec 31, 2019 | 42.37% | = | 100 | × | 1,465,659) | ÷ | 3,459,329) |
| Dec 31, 2018 | 39.63% | = | 100 | × | 1,205,596) | ÷ | 3,042,359) |
| Dec 31, 2017 | -4.42% | = | 100 | × | (108,063) | ÷ | 2,443,299) |
| Dec 31, 2016 | -18.06% | = | 100 | × | (456,873) | ÷ | 2,529,619) |
| Dec 31, 2015 | -23.49% | = | 100 | × | (521,031) | ÷ | 2,218,032) |
| Dec 31, 2014 | -41.18% | = | 100 | × | (577,820) | ÷ | 1,403,002) |
| Dec 31, 2013 | -97.06% | = | 100 | × | (645,323) | ÷ | 664,890) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in thousands
- Revenue Trend
- The revenue consistently increased over the analyzed period, starting from approximately $665 million in 2013 and reaching over $5 billion by the end of 2021. This reflects a strong growth trajectory, with notable acceleration after 2016, where revenue nearly doubled from around $2.5 billion in 2016 to over $5 billion in 2021.
- Net Income (Loss) Trend
- Net income experienced significant volatility throughout the period. Initial years from 2013 to 2017 showed consistent net losses, albeit with a decreasing magnitude, indicating gradual improvement. There was a sharp turnaround in 2018 and 2019, with substantial net profits of approximately $1.2 billion and $1.5 billion respectively. However, this positive trend reversed in 2020 and 2021, returning to net losses, although smaller in scale compared to the early years.
- Net Profit Margin Analysis
- Net profit margin followed a pattern consistent with net income trends. Starting with deeply negative margins around -97% in 2013, there was marked improvement through 2017 where the margin was still negative but approaching zero (-4.42%). The years 2018 and 2019 saw the company achieve strong profitability with margins exceeding 39%. In contrast, 2020 and 2021 reflected a decline back into negative territory, with margins of -30.56% and -4.36%, respectively, indicating challenges in maintaining profitable operations during these later years.
- Overall Insights
- Despite continuous revenue growth, profitability was highly inconsistent. The company demonstrated the ability to generate profits in a two-year window (2018-2019) but struggled to sustain them. The return to losses in recent years suggests potential cost management issues, market challenges, or investments impacting bottom-line performance. The marked fluctuation in profit margins highlights volatility in operational efficiency or external factors influencing profitability.
Comparison to Competitors
Twitter Inc., net profit margin, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -4.36% | 29.51% | 12.17% | 33.38% | 17.23% | 17.46% | 2.96% |
| Dec 31, 2020 | -30.56% | 22.06% | 10.17% | 33.90% | 11.05% | 13.09% | -4.38% |
| Dec 31, 2019 | 42.37% | 21.22% | 11.99% | 26.15% | 9.26% | 12.51% | 15.89% |
| Dec 31, 2018 | 39.63% | 22.46% | 12.41% | 39.60% | 7.67% | 9.68% | 21.20% |
| Dec 31, 2017 | -4.42% | 11.42% | 26.87% | 39.20% | 4.78% | 3.78% | 16.29% |
| Dec 31, 2016 | -18.06% | 21.58% | 10.81% | 36.97% | 2.11% | -0.59% | 16.88% |
| Dec 31, 2015 | -23.49% | 21.80% | 10.96% | 20.57% | 1.81% | -25.81% | 15.98% |
| Dec 31, 2014 | -41.18% | 21.88% | 12.18% | 23.58% | 4.85% | 15.38% | 15.37% |
| Dec 31, 2013 | -97.06% | 21.60% | 10.54% | 19.05% | 2.57% | -2.43% | 13.62% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Media & Entertainment)
Twitter Inc., net profit margin, long-term trends, comparison to sector (media & entertainment)
| Twitter Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2021 | -4.36% | 23.17% |
| Dec 31, 2020 | -30.56% | 17.24% |
| Dec 31, 2019 | 42.37% | 18.24% |
| Dec 31, 2018 | 39.63% | 21.57% |
| Dec 31, 2017 | -4.42% | 20.00% |
| Dec 31, 2016 | -18.06% | 18.15% |
| Dec 31, 2015 | -23.49% | 15.99% |
| Dec 31, 2014 | -41.18% | 16.62% |
| Dec 31, 2013 | -97.06% | 15.00% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Communication Services)
Twitter Inc., net profit margin, long-term trends, comparison to industry (communication services)
| Twitter Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2021 | -4.36% | 18.71% |
| Dec 31, 2020 | -30.56% | 11.50% |
| Dec 31, 2019 | 42.37% | 14.62% |
| Dec 31, 2018 | 39.63% | 16.41% |
| Dec 31, 2017 | -4.42% | 19.78% |
| Dec 31, 2016 | -18.06% | 12.77% |
| Dec 31, 2015 | -23.49% | 12.70% |
| Dec 31, 2014 | -41.18% | 10.14% |
| Dec 31, 2013 | -97.06% | 12.53% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).