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Why Isn’t Twitter Profitable?

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Perhaps the most surprising sentence in Twitter’s IPO documents Thursday — and the most troubling news for fans of the social media service — came on page 23 of its S-1 filing

“We have incurred significant operating losses in the past,” the company said, “and we may not be able to achieve or subsequently maintain profitability.”

Translation: Twitter hasn’t made a dime. And there’s no guarantee it will in the future

The company lost $67 million in the first half of 2013, the filing revealed, and it has an accumulated deficit of $418.6 million. That total shortfall is larger than its revenue last year, $316 million, itself a smaller number than most analysts were expecting. Read more…

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