Twitter Inc. (NYSE:TWTR)

The analysis of the financial trends reveals several significant patterns over the observed years.

Income (loss) from operations

From the beginning of the period, the company experienced substantial operational losses, starting with a negative figure exceeding $635 million in 2013. These losses progressively decreased year after year until 2017, where the company recorded a positive operational income of approximately $38.7 million. This positive trend continued in 2018 and 2019, with operational incomes increasing to $453 million and $366 million, respectively. However, in 2020, income from operations sharply declined to approximately $27 million, followed by a significant operational loss of nearly $493 million in 2021, indicating a reversal of the previous positive trend.

Revenue

Revenue showed a consistent and strong upward trajectory throughout the period. It more than doubled from about $665 million in 2013 to approximately $2.5 billion by 2016. Although there was a slight decrease in revenue in 2017 compared to the previous year, the overall general trend remained positive, with substantial growth in subsequent years. By 2021, revenue reached approximately $5.08 billion, marking a steady expansion in the company's top-line performance over the nine-year span.

Operating profit margin

The operating profit margin closely reflected the changes seen in income from operations. Initially, margins were substantially negative, reaching nearly -96% in 2013, which improved progressively to near breakeven by 2016. Beginning in 2017, the company achieved positive margins, peaking at 14.9% in 2018, which corresponded to the highest operational profit figures during the period. Margins remained positive but declined in 2019 and drastically decreased again in 2020, falling to a marginally positive 0.72%. By 2021, the margin turned negative again, reaching nearly -9.7%.

In summary, the company demonstrated significant growth in revenue over the period analyzed, coupled with an initial trend of reducing operational losses transitioning into operational profitability between 2017 and 2019. However, the period concluded with a sudden decline in operating profitability and a return to operational losses in 2021, despite revenue growth. This suggests challenges affecting operational efficiency or increased costs toward the end of the period that offset revenue gains.