Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Twitter Inc., consolidated income statement (quarterly data)
US$ in thousands
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 exhibits a general upward trajectory from early 2017 through late 2021, growing from approximately 548 million USD to a peak of 1.57 billion USD in the fourth quarter of 2021. However, a notable deceleration and subsequent decline are observed in the first half of 2022, with revenue falling to 1.18 billion USD by June 30, 2022.
- Gross Profitability and Cost Trends
- Gross profit generally mirrored revenue growth, increasing from 327.9 million USD in March 2017 to a peak of 1.05 billion USD in December 2021. Despite this growth, the cost of revenue rose steadily from 220.3 million USD to 540.7 million USD over the analyzed period, indicating that while the scale of operations increased, the direct costs associated with generating revenue also climbed significantly.
- Operating Expense Analysis
- Operating expenses demonstrate a consistent upward trend. Research and development costs rose from 128.7 million USD in March 2017 to 454.9 million USD by June 2022, reflecting an aggressive investment in product development. Sales and marketing expenses also increased, starting at 169.6 million USD and reaching 308.3 million USD in the final reported quarter. General and administrative expenses remained relatively stable until June 2020, where a significant spike to 246.2 million USD occurred, followed by a general increase to 216.6 million USD by June 2022.
- Operating Income Volatility
- Income from operations shows extreme instability. The company transitioned from operating losses in early 2017 to periods of sustained operating profit between late 2017 and early 2020. However, severe volatility emerged later, most notably a loss of 273.9 million USD in June 2020 and a substantial operating loss of 742.5 million USD in September 2021, the latter primarily driven by a litigation settlement of 765.7 million USD.
- Non-Operating Impacts and Net Income
- Net income is characterized by high volatility due to non-recurring items and tax fluctuations. Significant positive swings were observed in September 2018 and June 2019, largely driven by substantial tax benefits. A major gain on the sale of an asset group totaling 970.5 million USD in March 2022 artificially inflated net income for that period to 513.3 million USD, masking an underlying operating loss of 127.8 million USD. Conversely, the litigation settlement in late 2021 resulted in a net loss of 536.8 million USD.
Overall, the financial performance is marked by growing top-line revenue that has recently begun to contract, coupled with steadily rising operating costs. The underlying operational profitability is frequently overshadowed by significant non-operating events, including litigation costs, asset sales, and volatile tax provisions.
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