The market’s can’t get enough of the pending Twitter IPO. Nothing like the valuation of a Silicon Valley giant that still loses money to get investors salivating.
But there’s one aspect of Twitter’s financials that was recently revealed in its IPO filing that is an underanalyzed, and growing, money maker: sale of Twitter data to third parties. More than $47 million has come from selling off its data to a fast-growing group of companies that analyze the data for insights into news events and trends. That is a small amount compared with the revenue generated from advertising, but Twitter’s data business has rippled across the economy, according to a report in The Wall Street Journal.