Yet if a company can get profitable after its IPO -- and sustain rapid growth that beats investor expectations -- its newly scalable business model could be a catalyst for a rising stock price. Lots of venture-backed startups skip from the first stage -- winning the first customers -- to the third one -- sprinting to liquidity -- without completing the second stage -- building a scalable business model. Twitter skipped the second stage of scaling and did not earn a profit for years. Q1 2019 revenue growth also beat expectations, with most of the growth coming from the US despite the fact that most new users were international. That proves once again that Twitter is able to grow its revenue without significantly growing its user base.

Source: Forbes April 23, 2019 12:29 UTC