Stock Analysis on Net
Stock Analysis on Net

Twitter Inc. (NYSE:TWTR)

$22.49

This company has been moved to the archive! The financial data has not been updated since July 26, 2022.

Common-Size Income Statement
Quarterly Data

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Twitter Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Revenue
Cost of revenue
Gross profit
Research and development
Sales and marketing
General and administrative
Litigation settlement, net
Income (loss) from operations
Interest expense
Interest income
Other income (expense), net
Gain (loss) on sale of asset group
Income (loss) before income taxes
(Provision) benefit for income taxes
Net income (loss)

Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Revenue and Cost of Revenue
Revenue consistently represents 100% across all periods, serving as the baseline for other ratios. The cost of revenue fluctuates notably, ranging from a low of approximately 29.53% to a high near 45.95%. A notable increase in cost of revenue occurs in mid-2020 and again in mid-2022, suggesting rising direct costs associated with generating revenue during these periods.
Gross Profit
Gross profit margin generally remains strong, mostly within the 60% to 70% range. Peaks are observed at the end of 2017 and 2018, coinciding with lower cost of revenue percentages. However, a marked decline is evident in mid-2020 and mid-2022, aligning with increased cost of revenue, indicating some pressure on profitability from direct expenses during those times.
Operating Expenses
The research and development (R&D) expenses as a percentage of revenue vary substantially. The lowest R&D expense ratio appears towards late 2017 and 2018, followed by sharp increases in mid-2020 and mid-2022, reaching up to nearly 39%. This pattern suggests fluctuating investment in product development or innovation efforts over time. Sales and marketing expenses also exhibit variability but generally remain between roughly 18% and 32%. A significant decrease occurs around late 2020, indicating possibly reduced marketing efforts or efficiency gains. General and administrative expenses hover around 9% to 13%, with an anomalous spike in mid-2020, implying temporary elevated overhead costs during that quarter.
Income from Operations
Income (loss) from operations shows considerable volatility. While positive and growing margins characterize much of 2017 to 2019, abrupt declines to negative territory are seen in mid-2020 and again in late 2021 through mid-2022. This illustrates periods of operational challenges, potentially linked to increased costs or other expense pressures.
Interest Expense and Income
Interest expense as a percentage of revenue consistently declines over the observed periods, moving from about 4.6% earlier to under 2% in later quarters, indicating reduced borrowing costs or debt levels. Interest income follows a decreasing trend after peaking around 2019, suggesting diminishing returns on invested cash or other interest-generating assets.
Other Income and Special Items
Other income (expense), net, generally remains near zero but includes sporadic positive spikes in 2021. A significant gain appears in early 2022 relating to a sale of an asset group, sharply influencing that period's financials. Additionally, a sizable one-time litigation settlement expense dramatically affects financials in early 2022, with a negative impact exceeding 59% of revenue, contributing to a marked decline in profitability.
Income Before Taxes and Net Income
Income before income taxes presents large fluctuations, including periods of strong profitability in 2017 through 2019, followed by significant losses in mid-2020 and late 2021 to 2022, further accentuated by unusual items. The provision for income taxes exhibits instability, with some quarters showing negative tax expense ratios, indicating tax benefits or adjustments. Net income follows a similar volatile pattern, with spikes of high profitability in some periods and deep losses notably in mid-2020 and during 2021-2022. The considerable swings suggest a business experiencing both strong growth phases and considerable challenges influenced by exceptional expenses and market or operational conditions.