BREAKING: Twitter’s Financials Leaked, And They’re Losing Money

By Lauren Dugan Comment

Twitter’s financials have just been leaked, and they don’t look great. Gawker’s Ryan Tate got his hands on figures from Twitter’s 2010-2011 financials, which show a company hemorrhaging money.

Twitter has been pushing its money-making ideas lately – like offering access to historical tweets for a price and displaying Promoted Products on their smartphone apps – and it’s no surprise: the company needs to start turning a profit, and fast.

Gawker’s numbers come from a “source with close knowledge of Twitter’s financials, [who] leaked us revenue, profit, and other figures from the company’s recent past.”

Both 2010 and the first quarter of 2011 show serious losses for this 6-year-old company.

The most recent numbers from the first quarter of 2011 show Twitter to have brought in $23.8 million in revenue and lost $49.2 million, which puts them at a net loss of $25.8 million for the first three months of 2011.

And 2010 was even worse, with revenue at $28.5 million, but a net loss of $67.8 million.

However, all of these numbers come from the months before Twitter created a whole batch of new advertising and money-making products, so you can bet that the later months of 2011 were much brighter.

For instance, Twitter is working on a self-serve ad platform that would let small and medium-sized businesses purchase ads similar to the way it’s done on Facebook. Of course, these buy-ins would be much smaller than the rumored $100,000+ it costs to buy a Promoted Trend, but the sheer volume of ads will likely increase to make up for that.

So although Twitter was on shaky financial ground a year ago, that has likely turned around. Whether they’re making a profit now isn’t certain, but their increased focus on revenue generation would indicate that they are at least close.