Income Statement

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

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Cost of revenue	(1,797,510)	(1,366,388)	(1,137,041)	(964,997)	(861,242)
Gross profit	3,279,972)	2,349,961)	2,322,288)	2,077,362)	1,582,057)
Research and development	(1,246,704)	(873,011)	(682,281)	(553,858)	(542,010)
Sales and marketing	(1,175,970)	(887,860)	(913,813)	(771,361)	(717,419)
General and administrative	(584,336)	(562,432)	(359,821)	(298,818)	(283,888)
Litigation settlement, net	(765,701)	—)	—)	—)	—)
Income (loss) from operations	(492,739)	26,658)	366,373)	453,325)	38,740)
Interest expense	(51,186)	(152,878)	(138,180)	(132,606)	(105,237)
Interest income	35,683)	88,178)	157,703)	111,221)	44,383)
Other income (expense), net	97,129)	(12,897)	4,243)	(8,396)	(73,304)
Income (loss) before income taxes	(411,113)	(50,939)	390,139)	423,544)	(95,418)
(Provision) benefit for income taxes	189,704)	(1,084,687)	1,075,520)	782,052)	(12,645)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)

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).

Revenue: The revenue showed consistent growth over the five-year period. Starting from approximately 2.44 billion US dollars in 2017, it increased annually, reaching about 5.08 billion US dollars by the end of 2021. This indicates a strong upward trend in the company’s sales performance.
Cost of revenue: The cost of revenue also increased each year from around 861 million US dollars in 2017 to nearly 1.80 billion US dollars in 2021. The rising costs, although substantial, were proportionate but slightly lower relative to revenue growth, allowing gross profit to improve.
Gross profit: Gross profit rose steadily from approximately 1.58 billion in 2017 to about 3.28 billion in 2021. Growth in gross profit was supported by revenue expansion despite higher costs, suggesting effective management of production and operational expenses.
Research and development: Research and development expenditures consistently increased each year, from around 542 million in 2017 to roughly 1.25 billion in 2021. This reflects a significant and growing investment in innovation and development initiatives.
Sales and marketing: Sales and marketing expenses rose from approximately 717 million in 2017 to nearly 1.18 billion in 2021, indicating a continuous expansion in promotional activities and market outreach, although a slight dip occurred in 2020.
General and administrative: General and administrative costs increased over the period, moving from about 284 million in 2017 to 584 million in 2021. The sharpest increase occurred between 2019 and 2020, highlighting a rise in overheads and administrative spending.
Litigation settlement, net: A notable one-time litigation settlement expense appeared in 2021 amounting to approximately 766 million US dollars, representing a significant non-recurring charge impacting the financial results that year.
Income (loss) from operations: Operating income was positive from 2017 through 2019, peaking in 2018 at over 450 million, but showed a declining trend thereafter. A margin squeeze and the large litigation settlement in 2021 turned operating results negative, with an operating loss close to 493 million in 2021.
Interest expense: Interest expense generally increased from about 105 million in 2017 to 153 million in 2020, then decreased significantly to around 51 million in 2021, suggesting possible debt reduction or restructuring.
Interest income: Interest income grew substantially from 44 million in 2017 to a peak of 158 million in 2019, then declined to 36 million in 2021, indicating fluctuations in interest-earning assets or investment returns.
Other income (expense), net: Other income or expense showed volatile behavior, with negative values in early years, a marginal positive figure in 2019, a slight negative in 2020, and a strong positive turnaround in 2021 of approximately 97 million, signaling shifting non-operating income components.
Income (loss) before income taxes: Pre-tax income was positive in 2018 and 2019 with peaks above 390 million but turned negative in 2020 and 2021. The impact of operating losses and unusual charges contributed to this worsening trend.
(Provision) benefit for income taxes: Tax provisions demonstrated considerable fluctuations, with a substantial benefit recorded in 2018 and 2019, exceeding one billion US dollars in 2019, offsetting taxable income considerably. Negative tax provisions in 2020 coincided with losses, and a positive tax benefit was again recorded in 2021 despite losses.
Net income (loss): Net income exhibited strong positive results for 2018 and 2019, exceeding one billion US dollars. However, the company incurred net losses in 2017, 2020, and 2021, with the largest loss recorded in 2020 at over 1.13 billion. The net loss in 2021, though less severe, reflects the negative impact of unusual expenses and lower operational performance.

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Twitter Inc. (NYSE:TWTR)

Income Statement