showmenumbers.com - Show me numbers

Description: This is the blog of Adam Parker, Chief Executive of RealWire about the power of numbers and the online media.

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Twitter has invested $2.2bn in research and development over the last three years. But with growth in net revenue slowing considerably in 2016, it appears this sizeable investment is no longer paying dividends. Data for this post can be found here .

As Twitter’s revenue growth slows and its share price continues to slide, it’s not surprising to find the company’s costs being scrutinised. Earlier this week Techcrunch looked at executive pay and the remuneration of CFO/COO Anthony Noto in particular.

Research and development expenditure is a key area for a technology company like Twitter. You would expect it to be a significant cost, and sure it enough it is. You would also expect to see a significant return from such investment in user growth and ultimately in revenue. Twitter’s lack of user growth has been widely discussed so I’ve focussed on the $s.

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