/// Twitter’s Ad Sales Are Booming, Says Gawker
Gawker’s Ryan Tate got his hands on what he believes are recent financials for Twitter . I assume that his numbers are correct, and applaud him for getting them out there. But I think he’s doing a bad job of reading them. Twitter is the “biggest blown business opportunity in media or tech,” Tate says, because six years into it, it’s losing money, not minting it like Facebook. It’s certainly no Facebook. It probably won’t ever be anything like Facebook. But Tate’s numbers do describe Twitter as a rapidly growing media company. In 2010, the year it started making tentative moves into advertising, it generated $28.5 million in revenue. In the first three months of 2011, it came close to matching all of the previous year’s revenue, with $23.8 million. If Twitter’s growth rate never budged after that, that would put it on track to do $95.2 million in 2011. The pace of Twitter’s losses appears to have ramped up, too. Tate says it lost $67.8 million in 2010, and another $25.8 million in Q1 2011. Not a huge surprise given that Twitter has been on a multi-year hiring binge. So is that bad? Good? Hard to really say without taking a deeper dive into the numbers. For instance, my hunch is that almost all of Twitter’s 2010 revenue came from data licensing deals, not its ad business, and that most of its 2011 revenue came from ads, not data. If that’s the case, then its ad business is ramping even more rapidly than Tate’s numbers indicate. But I can’t tell from the outside, just like Tate can’t.
Twitter’s Ad Sales Are Booming, Says Gawker