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Twitter Inc. (NYSE:TWTR)

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

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 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -45.95 -42.25 -32.87 -37.74 -35.02 -36.78 -33.58 -38.60 -42.15 -35.17 -31.17 -34.12 -33.04 -33.55 -29.53 -32.14 -32.40 -33.51 -29.80 -35.62 -37.10 -40.19
Gross profit 54.05% 57.75% 67.13% 62.26% 64.98% 63.22% 66.42% 61.40% 57.85% 64.83% 68.83% 65.88% 66.96% 66.45% 70.47% 67.86% 67.60% 66.49% 70.20% 64.38% 62.90% 59.81%
Research and development -38.66 -30.95 -23.73 -25.26 -25.19 -24.20 -19.23 -22.31 -31.58 -24.81 -19.68 -21.68 -18.93 -18.59 -15.53 -19.89 -19.50 -18.55 -18.32 -23.08 -24.95 -23.48
Sales and marketing -26.20 -24.96 -21.59 -23.45 -25.36 -22.64 -18.93 -22.99 -30.33 -27.40 -23.98 -27.46 -28.55 -26.15 -23.30 -25.52 -26.46 -26.78 -25.91 -29.33 -32.29 -30.93
General and administrative -18.41 -12.48 -11.13 -11.75 -11.88 -11.34 -8.71 -10.10 -36.03 -13.54 -9.99 -11.38 -10.49 -9.81 -8.87 -10.33 -10.43 -9.88 -10.92 -10.73 -12.34 -12.74
Litigation settlement, net 0.00 0.00 0.00 -59.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income (loss) from operations -29.22% -10.64% 10.68% -57.84% 2.54% 5.04% 19.54% 5.99% -40.08% -0.92% 15.18% 5.36% 9.00% 11.90% 22.77% 12.12% 11.21% 11.27% 15.05% 1.23% -6.68% -7.35%
Interest expense -1.98 -1.29 -0.69 -1.03 -1.17 -1.27 -3.12 -4.23 -5.83 -4.12 -2.62 -4.40 -4.55 -4.74 -4.10 -5.06 -4.22 -4.06 -3.65 -4.53 -4.60 -4.63
Interest income 1.16 0.66 0.47 0.63 0.77 1.06 1.02 1.83 3.66 4.07 3.37 4.90 5.10 5.15 4.07 4.76 3.09 2.43 1.82 2.04 1.83 1.55
Other income (expense), net 1.50 -0.54 1.32 1.61 4.68 0.00 -0.07 -0.42 -0.05 -0.96 -0.23 -0.06 0.89 -0.06 -0.01 -0.31 -0.81 -0.03 -0.44 -1.71 -10.25 -0.22
Gain (loss) on sale of asset group 0.00 80.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income (loss) before income taxes -28.55% 69.00% 11.78% -56.63% 6.83% 4.83% 17.38% 3.17% -42.30% -1.92% 15.69% 5.80% 10.43% 12.26% 22.73% 11.51% 9.27% 9.61% 12.79% -2.97% -19.70% -10.65%
(Provision) benefit for income taxes 5.60 -26.26 -0.19 14.82 -1.31 1.74 -0.15 -0.11 -159.33 0.88 -3.90 -1.36 122.63 11.98 5.37 92.59 4.82 -0.43 -0.34 -0.60 -0.59 -0.58
Net income (loss) -22.95% 42.74% 11.59% -41.81% 5.51% 6.56% 17.23% 3.06% -201.63% -1.04% 11.79% 4.43% 133.06% 24.25% 28.09% 104.10% 14.09% 9.17% 12.45% -3.58% -20.30% -11.23%

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).

The financial performance from March 2017 through June 2022 is characterized by a transition from stable operating margins to increased volatility and a deteriorating cost structure. While the company maintained a period of operational profitability between 2018 and 2019, subsequent quarters reveal significant pressure on both gross and operating margins, compounded by substantial non-recurring items.

Gross Margin and Cost of Revenue
A period of margin expansion occurred between 2017 and late 2018, with gross profit peaking at 70.47% of revenue in December 2018. This trend reversed starting in 2020, leading to a sustained decline. By June 2022, gross profit fell to 54.05%, the lowest point in the analyzed period, driven by a steady increase in the cost of revenue, which rose to 45.95% of revenue.
Operating Expense Analysis
Research and development expenses remained relatively stable between 18% and 25% of revenue for several years but experienced a sharp escalation in 2022, reaching 38.66% by June. Sales and marketing expenses fluctuated between 18.93% and 32.29%, showing no singular long-term trend but contributing to operational pressure. General and administrative expenses remained largely consistent around 10% to 13%, with a notable anomaly in June 2020 where expenses spiked to 36.03% of revenue.
Operating Income Volatility
Operating profitability peaked in December 2018 at 22.77% of revenue. However, operational stability diminished thereafter. A significant deficit was recorded in September 2021, where income from operations dropped to -57.84% due to a litigation settlement amounting to 59.64% of revenue. The downward trend continued into mid-2022, with operating income falling to -29.22%.
Non-Operating Items and Net Income
Net income figures are heavily distorted by non-operating events and tax volatility. Significant fluctuations are observed in the provision for income taxes, including a benefit of 122.63% in June 2019 and a provision of -159.33% in June 2020. Furthermore, a substantial gain on the sale of an asset group in March 2022 (80.81% of revenue) temporarily offset operational losses, highlighting a divergence between the company's core operating performance and its bottom-line results.

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