Operating Profit Margin
since 2013
Calculation
Twitter Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -9.70% | = | 100 | × | (492,739) | ÷ | 5,077,482) |
| Dec 31, 2020 | 0.72% | = | 100 | × | 26,658) | ÷ | 3,716,349) |
| Dec 31, 2019 | 10.59% | = | 100 | × | 366,373) | ÷ | 3,459,329) |
| Dec 31, 2018 | 14.90% | = | 100 | × | 453,325) | ÷ | 3,042,359) |
| Dec 31, 2017 | 1.59% | = | 100 | × | 38,740) | ÷ | 2,443,299) |
| Dec 31, 2016 | -14.52% | = | 100 | × | (367,208) | ÷ | 2,529,619) |
| Dec 31, 2015 | -20.29% | = | 100 | × | (450,036) | ÷ | 2,218,032) |
| Dec 31, 2014 | -38.41% | = | 100 | × | (538,866) | ÷ | 1,403,002) |
| Dec 31, 2013 | -95.63% | = | 100 | × | (635,831) | ÷ | 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
The operating profit margin exhibited significant volatility over the period from 2013 to 2021, characterized by a prolonged recovery phase, a brief window of operational profitability, and a subsequent return to negative margins.
- Revenue Trajectory
- A consistent upward trend in revenue is observed, increasing from US$ 664.89 million in 2013 to US$ 5.08 billion by 2021. This growth indicates a steady expansion of the top line throughout the nine-year period.
- Operating Margin Evolution
- The operating profit margin underwent a substantial recovery between 2013 and 2017, improving from -95.63% to 1.59%. This transition suggests a successful effort to scale operations and reduce the proportional impact of operating costs. Efficiency peaked in 2018, with the operating profit margin reaching its highest point at 14.90%.
- Profitability Contraction
- A downward trend followed the 2018 peak, with margins contracting to 10.59% in 2019 and further declining to 0.72% in 2020. By 2021, the operating profit margin returned to a negative value of -9.70%. This decline is particularly notable as it occurred despite 2021 recording the highest revenue of the entire period, implying that operating expenses grew at a rate that significantly exceeded revenue growth during the final year.
- Operating Income Volatility
- Operational results shifted from heavy losses in the early period to a peak operating income of US$ 453.33 million in 2018, before returning to a substantial loss of US$ 492.74 million in 2021. The data reveals a cyclical pattern where early-stage losses were mitigated by growth, only to be replaced by renewed operational deficits in the most recent fiscal year.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Twitter Inc., operating profit margin, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | -9.70% | 30.55% | 17.89% | 39.65% | 20.86% |
| Dec 31, 2020 | 0.72% | 22.59% | 16.89% | 38.01% | 18.34% |
| Dec 31, 2019 | 10.59% | 21.15% | 19.39% | 33.93% | 12.92% |
| Dec 31, 2018 | 14.90% | 19.24% | 20.11% | 44.62% | 10.16% |
| Dec 31, 2017 | 1.59% | 23.59% | 21.28% | 49.70% | 7.17% |
| Dec 31, 2016 | -14.52% | 26.27% | 20.97% | 44.96% | 4.30% |
| Dec 31, 2015 | -20.29% | 25.82% | 21.47% | 34.72% | 4.51% |
| Dec 31, 2014 | -38.41% | 24.99% | 21.67% | 40.06% | 7.31% |
| Dec 31, 2013 | -95.63% | 23.34% | 20.98% | 35.62% | 5.22% |
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).