One of the biggest concerns about Facebook
A business that is working fabulously
Costolo shared a lot of fascinating data and insights at the conference. Twitter currently has 140 million active users who produce 400 million tweets a day. Two and a half years ago, the company decided to go with an ad-based model, though it also pursues data licensing opportunities as well. Costolo said that Twitter is an advertising platform, and that's how it will go to market.
When asked whether Twitter was thinking about a possible IPO now that Facebook had gone public, Costolo said that management isn't focused on that at all, and prefers to think about the long term. The business is "currently working fabulously," according to Costolo, and he's really excited about the future.
A recent report from Bloomberg seems to support Costolo's view. According to two people with information on the issue, Twitter is expected to deliver $1 billion in sales in 2014 -- a mere eight years after its founding. For comparison, Google
Born to be mobile
For investors, Costolo's remarks on mobile were particularly intriguing. Despite only just having begun to run ads there, Costolo shared that Twitter has generated more advertising revenue from its mobile platform than from its website on several days recently. He believes that Twitter ads are "inherently suited to mobile" and that mobile revenue is "already doing delightfully well."
While Costolo was clearly contrasting Twitter's mobile success with Facebook's very public challenges in that area, this is also encouraging news for Internet companies in general. Google, LinkedIn
An amazing leader
Twitter co-founder Jack Dorsey has described Dick Costolo as "an amazing leader" who deserves a lot of credit for developing Twitter's advertising model. After listening to the interview with Costolo, I came away very impressed with him and Twitter.
The company clearly has a solid business model, while also providing a wonderful service that brings the world closer together. As an illustration of the latter phenomenon, Costolo shared a wonderful story about how researchers from Johns Hopkins were able to track the spread of influenza by analyzing 2 billion public tweets. Twitter, according to its CEO, is always evolving in unknown ways that are often driven by its users. The company appears to have a very bright future, and it may be one of the leading pioneers in figuring out how to be profitable in the mobile era.
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John Reeves owns shares of Google. You can follow him on Twitter @TenBaggers. The Motley Fool owns shares of LinkedIn, Google, and Facebook. Motley Fool newsletter services have recommended buying shares of Google and LinkedIn. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.