Twitter, Inc. Research Report

    About company

    Twitter, Inc. is a globally popular US-based social networking and microblogging site with its head office in San Francisco, California.

    Users use this site for posting messages and interacting with one another, and these messages are called tweets. One has to register to like, post, and retweet these tweets. Nonetheless, those who have not registered can also read the tweets posted publicly.  

    Mobile front-end software or browsers help users interact with this microblogging site. It can also be done via APIs (application program interfaces) with a computer program.

    Before 2020 April, users could access Twitter’s services via SMS (short messaging service). Twitter Inc., a San Francisco-based company in California, provided its massaging service in this way. Twitter has set up above twenty-five offices across the world.

    Initially, tweets were limited to 140 characters. However, in November 2017, the limit was increased twofold to 280 characters for non-CJK (Chinese, Japanese, and Korean) languages. Video and audio tweets keep restricted to 140 characters for most accounts.

    When was Twitter set up?

    Noah Glass, Jack Dorsey, Evan Williams, and Biz Stone set up the company on March 21, 2006, and the firm was officially launched in July of the same year.

    Incredible success within a short time 

    By 2012, over 100 million subscribers posted three hundred and forty million tweets per day. Furthermore, the site managed 1.6 billion search queries every day on average. In 2013, Twitter became one of the ten most-surfed websites in the world and it has been portrayed as “the SMS of the Internet“.

    By the beginning of 2019, the social networking site had over three hundred and thirty million active users per month. The lion’s share of tweets is posted by a bit of several users.

    On 25th April 2022, the board of directors of Twitter consented to a US $44 billion takeover by Elon Musk, the Chief Executive Officer of Tesla and SpaceX, practically turning it into one of the most significant transactions to make a firm private.



    Concerns faced by users

    There were fake and malicious accounts identified by Twitter, and they were subsequently shut down. Users also witnessed outages on different occasions. However, the social networking giant could maintain a decent uptime. The downtime was specifically observed during extremely trendy tech or business sector events.

    What type of company is Twitter?

    Twitter is a publicly-traded company.

    To which sector does Twitter belong?

    Twitter belongs to the social networking services industry.

    Who is the founder of Twitter?

    The founders of Twitter are Noah Glass, Jack Dorsey, Evan Williams, and Biz Stone. Jack Dorsey is a US-based programmer, internet entrepreneur, and philanthropist. He is the erstwhile Chief Executive Officer and a co-founder of the firm.

    Where is the central office of the firm located?

    The corporation has its central office in San Francisco, California.

    Which area does Twitter serve?

    Twitter serves a worldwide user base.

    What are the services provided by Twitter?

    The services provided by Twitter are the following: 

    • Tweets (hashtags, retweets, usernames, replies, using SMS, integrated photo-sharing service, URL shortener, accessibility, and polls) 
    • Non-tweet content (spaces, fleets, and video streaming)
    • Curation (Twitter lists, trending topics, and moments)

    How many employees work for Twitter? 

    As of December 2021, more than 7,500 people are working with the company.

    Which industry does Twitter serve?

    Twitter serves the Internet industry. 

    Which are the subsidiaries of Twitter, Inc.?

    Listed below are the subsidiaries of Twitter:

    • Periscope (ceased operation) 
    • Vine (ceased operation)

    In which programming language is Twitter scripted?

    Twitter is scripted in the following programming languages:

    • Ruby 
    • Java 
    • JavaScript 
    • Scala

    Which are some of the prestigious clients on Twitter?

    Some of the well-known clients of the corporation are as follows:

    • Tweetie
    • Agorapulse  
    • Tweetdeck 
    • Buffer 
    • Tweetbot for iOS
    • CoSchedule 
    • Dlvr.it
    • Hootsuite
    • Sprout Social
    • Social Oomph
    • Instagram
    • SocialBee
    • tchat.io
    • Triberr
    • IFTTT 

    Who is the owner of Twitter?

    The owner of Twitter is Twitter, Inc.

    How many users does Twitter have?

    As per data furnished till Q1 2022, Twitter has 229 million monetizable DAU (daily active users).

    Which are the native clients on which Twitter runs?

    Twitter runs on the following native clients:

    • Android 
    • iOS 
    • Microsoft Windows 
    • Windows Phone 
    • Web 
    • macOS 

    Third-party applications

    For a considerable period, the social networking giant has restricted the usage of third-party apps getting the service by enforcing a 100,000 user cap per app. Since August 2010, third-party Twitter apps have been necessitated to utilize OAuth, a verification process that does not ask users to key in their passwords into the verifying app. This step was carried out to raise security and better the subscriber’s feel.

    Twitter Blue

    On 3rd June 2021, Twitter declared a paid subscription facility called Twitter Blue, which renders extra high-quality attributes to its service:

    • Bookmarks, permit users to keep separate tweets into folders.
    • Undo Tweet permits users to call back a tweet within a small period before the posting takes place.
    • An assortment of shade compositions and app symbols for the mobile application of Twitter.
    • Reader mode, which switches tweet threads into a commentary-like appearance.
    • NFT profile picturess, included on 20th January 2022. These are exhibited in a hexagon-pattern border, instead of circular similar to other profile pictures.
    • Round-the-clock customer assistance.
    • An edit attribute for tweets is in progress.



    Twitter, Inc. Management

    Parag Agrawal (Chief Executive Officer)

    Parag Agrawal serves as the Chief Executive Officer of Twitter. He became a part of the company in 2011 and from 2017 October to 2021 November, functioned as the Chief Technology Officer (CTO). As the Chief Technology Officer, he had the responsibility for the technological planning of the company, heading operations to better growth speed and at the same time progressing the status of Machine Learning throughout the organization. 

    Before getting the appointment of the Chief Technology Officer, Agrawal had ascended to be the 1st Illustrious Engineer of Twitter because of his activities throughout customer engineering and returns, incorporating his influence on the re-hastening of viewer surge in 2016 and 2017.

    Mr. Agrawal has a Ph.D. from Stanford University in computer science and also a bachelor’s degree from the Indian Institute of Technology (IIT), Bombay in engineering and computer science.

    Jack Dorsey (Co-Founder and Ex CEO)

    Jack Dorsey is one of the co-founders of Twitter and he played an instrumental role in setting up the company in 2006. Jack was re-instated as the Chief Executive Officer between 2015 September and 2021 November. Furthermore, Dorsey was the co-founder of Block (erstwhile Square), where he is working as the chairman and CEO.

    Leslie Berland (Chief Marketing Officer)

    Leslie Berland functions as the marketing lead of the company and she is entrusted with the responsibility for worldwide product, consumer, and sales marketing and worldwide communication of Twitter. Berland acted as the Chief People Officer of the company from 2017 to 2021 as well.

    Before becoming a part of Twitter, Inc. in 2016, Leslie served as the EVP (Executive Vice President) of worldwide sales and promotion and digital collaborations with American Express. Since she is an affiliate of the worldwide management group of the firm, Berland supervised media, publicity, content, funding, digital collaborations, and trademark identity.

    During the starting phase of her professional life, Berland headed Public Relations and digital interaction planning for worldwide trade names from the organization’s perspective. In 2005, Berland became associated with American Express and headed a worldwide squad with responsibilities for generating market demand and propelling trade via diverse merchandise, sales, and consumer experiences worldwide.

    Leslie’s sales activities have earned laurels and recognitions from the D&AD, Cannes Lions, OBIE, FEPE, as well as One Show. For three successive years 2017, 2018, and 2019, Berland got nominated as one of the Most Influential Chief Marketing Officers by Forbes magazine. Besides, Leslie received honors from Business Insider, Adweek, and Ad Age, as a business stalwart.

    Berland has a B.S. degree from the College of Communication, Boston University.

    Ned Segal (Chief Financial Officer)

    Ned Segal serves as the chief financial officer of the company, heading Twitter’s customary financial operations together with business growth, worldwide content, merchandise collaborations, and development.

    Before becoming a part of Twitter, Segal served as the Senior Vice President (Finance) for the Small Business Group of Intuit. There he had the responsibility for the tactical and financial policymaking of the unit. Ned has functioned as the CFO of RPX as well, which is the leading provider of patent risk-handling solutions to tech firms across the world. Segal has 17 years of experience with Goldman Sachs, of late as MD and chief of the worldwide software investment banking division.

    Segal is a part of the BoD of Beyond Meat, a factory-oriented meat firm, and he is an associate of the audit team. Ned is linked with the non-profit organizations of San Francisco as well, comprising functions as a Tipping Point Community Board Member.

    Segal did his graduation with a BS degree from Georgetown University. Ned stays with his three kids and wife in San Francisco.

    Twitter stock performance 

    The common stocks of Twitter, Inc. are traded on the NYSE (New York Stock Exchange) with the ticker symbol TWTR. 

    On May 13, 2022, Twitter, Inc. (NYSE: TWTR) closed trading at US $40.72 at 4:00 pm Eastern Daylight Time (EDT). There is a delay of a minimum of 20 minutes.

    Stock chart

    Twitter, Inc. Financial Performance

    Condensed consolidated income statement of Twitter, Incorporated (amounts are in thousand US $, other than per share info) (unaudited)

    Three months ended

    March 31,

    Twitter, Inc. Financial Performance

    Financial performance highlights (Q1 FY22)

    • Overall Q1 revenue amounted to US $1.20 billion, a rise of 16% YOY (year-over-year), or 19% on a CCB (constant currency basis), indicating headwinds related to the conflict in Ukraine. While taking out MoPub Acquire and MoPub, year-over-year (YOY) development was 22%.
    • Overall expenditure and costs were US $1.33 billion, a year-over-year rise of 35%. This led to an operating loss of US $128 million and an operating margin of -11%, in comparison to US $52 million of operating income or an operating margin of 5% in the same time of the preceding year.
    • SBC (stock-based compensation) expenditure rose 60% Y-O-Y to US $177 million and amounted to around 15% of overall revenue.
    • Net income stood at US $513 million, reflecting Diluted Earnings per Share of $0.61 and a 43% net margin.
    • Net cash supplied by operating functions in the quarter amounted to US $126 million, in comparison to US $390 million in the same time the previous year. Overall capital expenses amounted to US $161 million, in comparison to US $179 million for the same time the previous year.
    • Average mDAU2 (monetizable daily active usage) was estimated at 229 million for Q1, ↑15.9% in comparison to Q1 of the earlier year.

    As a whole, Twitter, Inc. featured a somewhat moderate financial performance for Q1 FY22.

    Disclaimer: This case study has a specific emphasis on knowledge enrichment. Investment awareness is not the criterion over here. Hence, one should keep in mind that investment is always associated with market risks. A detailed discussion with any investment advisor is always a prudent step. Any mistake would be costly for your finances and you might incur losses that would be difficult to make up. Only reading a few company profiles is not a well-judged initiative for you.



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