BusinessWeek report says Twitter to record first profit this year

Twitter founders, Biz Stone (left), and Evan Williams (right)

Twitter founders, Biz Stone (right), and Evan Williams (left)

BusinessWeek has published a report that says the popular microblogging website Twitter will earn a profit in 2009.

The report says deals to make tweets available for indexing by Google and Microsoft worth $25 million in 2009 ($15 million and $10 million respectively) contributed to the profit along with new cost cutting measures.

The report cites people familiar with Twitter’s finances who spoke on condition of anonymity.

Twitter remains a private company for now, and chooses not to release any financial reports.

Assuming the reports are true, it would be the first operating profit for the three-year old company.

Twitter founder Bizz Stone recently confirmed the company is working on providing premium services to commercial accounts for a fee. No other information is currently available yet as to what type of premium features the company could make available.

Additionally, it seems many firms would be willing to pay some fees, as Dell Computers two-weeks ago said it earned $6.5 million from sales directly resulting from Tweets.

Reports indicate Twitter could be heading for an IPO, the only thing that seemed to be stopping it from achieving a public stock offering was the fact that the company simply wasn’t profitable and arguably even lacked a sufficient business model to generate revenue for investors, but that seems to be all changing now, at least slowly.

Twitter most recently raised an undisclosed amount of financing from existing investors at a $1 billion valuation.


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Peggy holds a Bachelor Arts degree with honors in Economics from York University in Toronto, Canada. She is a Certified Management Accountant (CMA). She has also passed Level I of the Chartered Financial Analyst (CFA) Program. She is also a realtor. Write to peggy@business2press.com
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