Is Twitter Really Profitable? Do the Math


When reports of Twitter's profitability came out, it seemed like a great underdog story. Social media critics have long blasted the microblogging platform for its lack of a revenue model. In October, real-time search deals with Google (GOOG) and Microsoft (MSFT) generated $25 million in revenue -- more than Twitter's annual expenses of between $20 million and $25 million. That would indicate a profit -- never mind the $155 million that's been invested in the company -- but are the Champagne corks flying too soon?