Twitter Inc. (NYSE:TWTR)

The financial data reveals significant fluctuations in the company's profitability and returns to shareholders over the period analyzed. Net income (loss) figures demonstrate a notable transition from consistent losses in the early years toward profitability, followed by a reversion to losses in the more recent years.

Net Income (Loss)

Initially, the company experienced substantial net losses, with the loss amount decreasing each year from approximately -$645 million in 2013 to -$108 million in 2017. This trend indicates an improving operational performance over this period. However, in 2018 and 2019, the company achieved positive net income, recording $1.2 billion and $1.5 billion respectively, signifying a strong turnaround and effective management or market conditions during those years.

Contrastingly, the subsequent years of 2020 and 2021 saw a return to losses, with net losses increasing again to -$1.1 billion in 2020 and -$221 million in 2021, suggesting challenges in sustaining profitability or adverse external factors impacting the business.

Stockholders’ Equity

Stockholders’ equity consistently increased year-over-year from approximately $2.95 billion in 2013 to a peak of around $8.7 billion in 2019, reflecting accumulation of retained earnings and possible capital infusions. Following this peak, a decline is observed in 2020 and 2021, with equity decreasing to roughly $7.3 billion by the end of 2021. This decline corresponds temporally with the net losses incurred, implying that these losses have adversely affected the equity base.

Return on Equity (ROE)

Return on equity trends mirror the net income performance, starting from deeply negative returns at nearly -22% in 2013 and steadily improving to just below zero by 2017. The ROE shifts to positive territory in 2018 and 2019, recording returns of approximately 17.7% and 16.8%, respectively, indicative of enhanced efficiency in generating profit from equity during those years.

Following this period, ROE declines sharply back into negative figures, with -14.3% in 2020 and -3.0% in 2021, consistent with the resurgence of net losses. This indicates diminished profitability and a reduced return to shareholders in the latest years.

Overall, the data outlines a business that struggled with consistent losses in the early years, managed a period of profitability and equity growth around 2018–2019, but then encountered renewed profitability pressures leading to losses and contraction in equity and return measures by 2021. This suggests cyclical or situational challenges affecting financial performance and highlights the volatility in generating shareholder value across this timeframe.