Twitter's 2 divisions are expected to make $3.3 billion for full-year 2019(1) US Revenue $1.7 billion (51.7%), and
(2) International Revenue $1.6 billion (48.3%).
Twitter's International business is expected to contribute $1.6 billion to Twitter's 2019 revenues, making up 48.3% of Twitter's $3.3 billion in expected revenues for 2019. The International segment's total revenue is expected to be 6% lower than that from US business.Twitter is expected to add $788 million in revenue between 2016 to 2019, out of which the International segment is expected to provide $638 million, that is 80% of the total expected increase.This revenue growth has been key to Twitter's 53% price appreciation since 2016, further helped by increasing margins. We discuss Twitter’s valuation analysis in full, separately.Below we discuss Twitter's business model, followed by sections that review past performance and 2019 expectations for Twitter's revenue drivers and competitive comparisons of its advertising revenue with Facebook and Snapchat.
Twitter Business Model
What does Twitter offer:
Twitter, is a global platform for public self-expression and conversation in real time. The company allows a user to consume, create, distribute and discover content. From breaking news and entertainment, to sports, politics, and everyday interests, Twitter shows every side of the story. Twitter is available in more than 40 languages around the world and can be accessed via twitter.com, Twitter owned and operated mobile applications (e.g. Twitter for iPhone and Twitter for Android), and SMS.
Has 2 major Operating Segments:Advertising Services
: The company generate most of their advertising revenue by selling Promoted Products. These products include:Promoted tweets to be delivered to intended users.Promoted Accounts for advertisers to grow a community of users who are interested in their business, products or services.Promoted Trends appear at the top of the list of trending topics or timeline for an entire day in a particular country or on a global basis.Data Licensing and Other
: They generate data licensing and other revenue by (i) offering data products and data licenses that allow their data partners to access, search and analyze historical and real-time data on the platform, and (ii) providing mobile advertising exchange services through their MoPub exchange.
What Are The Alternatives?
Major competitors are companies like Facebook, Alphabet, Microsoft, Snap, TikTok and Verizon media group.
What Is The Basis of Competition?
The industry is characterized by rapid technological change, frequent product innovation and continuously evolving user, advertiser, content partner, platform partner and developer preferences and expectations. Significant competition comes from companies that provide tools to facilitate communications and the sharing of information, enable marketers to display advertising, and other online ad networks, exchanges and platforms.
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Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
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