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Why Twitter Will Be Profitable by the End of the Year

Did you really think you’d read that headline six months ago? Well, a lot has changed since then! Claims of Twitter’s profitability arose the week before Christmas last year, when BusinessWeek used the two real-time search deals closed by the company (with Google and Microsoft) to do some basic math. It didn’t hold up, but the new year has brought new revenue. I strongly suspect that 2010 will be Twitter’s first in the black.

What happened at the end of 2009? Well, in October, Twitter locked in $25 million in revenue through the Microsoft and Google data licensing deals. The company also revealed that its annual expenses were around $20 million. So, $25 million minus $20 million equals a $5 million profit, right?

Not really.

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