The above graph represents the Twitter annual revenue by segment, starting from the fiscal 2011 to 2020. The company has reportedly two segments: advertising services and data licensing and other. In 2019, Twitter advertising revenue reached an all-time high of $2,993.4 million, with an impressive 14.4% YoY growth. On the other hand, the revenue from data licensing and other also increased 9.6% YoY, to a record-high of $465.9 million.
It is important to note that since 2012, the social media company has been generating more than 80% of its total annual revenue from advertising services.
Growth in Twitter’s Advertising and other revenues: History
|Note||Twitter fiscal year starts from January 1st|
Twitter’s annual advertising revenue surpassed $1 billion mark for the first time in 2014. The company recorded a strong 111% YoY growth in its ad revenue, amounting to $1,255.7 million ($1.26 billion), globally. While the data licensing revenue amounted to $147.3 million during the same year.
Within just two years, Twitter’s ad revenue surpassed $2 billion milestone, worldwide, with nearly 12.7% YoY growth. One must note that, between 2011 and 2015, the YoY growth of Twitter annual revenue from advertising services beat the market expectations. However, in 2016 and 2017, amidst the rising competition from Facebook and LinkedIn, the growth in Twitter’s advertising revenue remained below expectations.
After the dismal performance in 2017, the commendable growth in advertising revenue of Twitter in 2018 earned back investors’ confidence as well.
On the other hand, nearly 15% of Twitter’s total revenue in 2018 came from data licensing and other business. With each passing year, Twitter’s revenue from data licensing and others in on the constant rise, especially after crossing $100 million in 2014.
About Twitter Inc.
Twitter Inc. (NYSE:TWTR) is the fastest growing microblogging platform. Founded in 2006, Twitter soon became a popular social media platform and crossed 100 million users in 2012. The company launched its IPO in 2013 and valued $31 billion.
Twitter currently has 321 million active monthly users. In March 2018, Twitter is ranked the twelfth most visited website by Alexa’s web traffic analysis. However, due to the rising competition from Facebook and other social networking sites, Twitter failed to keep its growth rate intact in the last few years, Consequently, the company valuation tanked and hovering $25 billion currently.
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