Twitter Is Finally Getting Its Costs Under Control
Between 2013 and 2016, social media company Twitter (NYSE: TWTR) reported $2.2 billion of cumulative net losses. That's nearly equivalent to Twitter's annual revenue. Revenue growth ground to a halt this year, so the only path toward profitability was to dramatically slash costs.
Twitter's third-quarter report showed some serious progress on that front. Revenue declined by 4% year over year, but operating expenses were reduced by so much that the company produced a positive GAAP operating profit for the first time in its history. A GAAP net profit is possible during the fourth quarter if Twitter hits the high end of its guidance, something that looked out of reach as recently as last year.
Image source: Getty Images.
Source: Fool.com
