How Did Twitter Make Money Before Elon Musk Torched It?

Twitter has been in the news continuously for the past several months. Elon Musk acquired the social media company for approximately $44 billion, taking it private in a transaction surrounded by drama and intrigue.

How does Twitter make money, considering it’s free to use? The answer is primarily advertising, like most social media companies.

When Was Twitter Founded?

Twitter is a social media company that was founded in 2006 by Jack Dorsey. He is also the founder of Block, (formerly known as Square). The company went public with an initial public offering (IPO) of stock in 2013.

Twitter Is Free and Popular

The platform is free to use, and thus it has snowballed. Reportedly, the platform has approximately 396.5 million users globally and 206 million daily active users. At least 500 million tweets are sent daily. Most people use it to scour news or entertainment content.

How Does Twitter Make Money?

Despite Twitter’s large user base, it has struggled to make money consistently over the years. The firm makes money primarily in two ways: advertising and data licensing. The large base lets businesses send advertising tweets to users.

How Does Twitter Make Money?

Twitter’s revenue was around $5.08 billion in 2021. That is more than double its 2017 revenue of approximately $2.44 billion. With growth like that, one expects Twitter to be profitable. 

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