The above graph represents the type of Twitter costs and expenses by year, starting from the fiscal 2010 to 2020. The company’s total operating expenses clocked $3,093 million in 2019, with an increase of 19.5% YoY. The total operating expenses include the cost of revenue, research and development expenses, sales and marketing expenses, general and administrative expenses.
|Note||Twitter fiscal year starts from January 1st|
Twitter R&D expenses increased an appreciable 23.2% YoY in 2019, to $682.3 million. That’s representing 20% of the company’s total revenue. The growth was attributable to a $90.6 million increase in personnel-related costs mainly driven by an increase in employee headcount, and a $37.8 million net increase in allocated facilities costs and other supporting overhead expenses.
Twitter cost of revenue reached an all-time high of $1,137 million in 2019, showing 17.8% YoY growth. The growth was attributable to $127.5 million increase in direct costs (infrastructure costs and revenue share expenses), and a $44.5 million increase in depreciation expense primarily related to additional internally developed software, server and networking equipment.
Twitter sales and marketing expenses increased 18.5% YoY in 2019, to $913.8 million, globally. The growth in the company’s marketing spending was attributable to an $83.9 million increase in personnel-related costs mainly driven by an increase in employee headcount, a $52.0 million net increase in allocated facilities costs
and other supporting overhead expenses, and a $6.6 million increase in marketing and sales-related expenses.
Twitter general and administrative expenses increased 20.4% YoY, from $298.8 million in 2018 to $359.8 million in 2019.
About Twitter Inc: Additional Information
Twitter Inc. (NYSE: TWTR) is a global social networking platform, created on March 21, 2006, by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams. The company is based in San Francisco, California, and has more than 35 offices around the world.
Twitter is a microblogging website/app where people around the world share their thoughts by posting a Tweet which includes text, images, videos, gifs. Initially, the Tweet limit was restricted to 140 characters, but on November 7, 2017, the company doubled its Tweet limit to 280 characters for all languages except Chinese, Japanese, and Korean.
In 2013, Twitter emerged as one of the ten most-visited websites on the Internet and has been described as “the SMS of the Internet”.
On November 6, 2013, Twitter priced its initial public offering (IPO) at $26 per share, which closed at $44.90 next day, giving the company a valuation of over $31 billion.
As of 2019, Twitter is ranked 41 of the top 500 websites on the web, Alexa web traffic analysis.
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