Twitter’s Enormously Fast Revenue Growth
“Earlier this year, Twitter expected revenue to reach $140 million by the end of 2010 and $1.54 billion in 2013, according to documents leaked to TechCrunch…. The documents also show that the social networking site projected it would bring in $400,000 in revenue this quarter—and $4 million during the fourth quarter. So far, Twitter’s only confirmed revenue stream has been its relationship with ExecTweets, which it promotes.”
TechCrunch actually says Twitter will “be at a $140 million revenue run rate” by the end 2010 — meaning December 2010 would do $11.67 million — not that Twitter expected to do a full $140 million in 2010. (If it did, say, $1 million per month for 11 months, and then $12 million in December, that would mean finishing 2010 with a “run rate” of $144 million but actual 2010 revenues of only $23 million.)
Meanwhile, the TechCrunch story reports “Twitter has told us that this was never an official document and it certainly is no longer accurate.”
Phew. That kind of revenue trajectory would make it tough on every other venture-backed start up forever after. I mean, imagine how disappointed your board would be if you grew your company at a mere 400% or 500% in sequential quarters!