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.
Source: Fool.com