Twitter plans to head to profitability from Q4

Twitter plans to have signed up hundreds of customers to its new advertising system by the end of the year as part of plans to make the microblogging company self-sustaining and profitable.

Twitter plans to have signed up hundreds of customers to its new advertising system by the end of the year as part of plans to make the microblogging company self-sustaining and profitable.

But chief operating officer Dick Costolo is not setting any public deadlines or revenue targets, according to US reports.

Although Costolo has said Twitter will have to aim at generating hundreds of millions of dollars in revenue to justify the company's valuation at over $1bn last September.

Although Twitter has had exponential growth, it has been slow to find a business model to translate that into revenue.

Twitter's profitability is currently riding on the success of the new "Promoted Tweets" advertising system and its commercial accounts business, which is to be launched by August.

The commercial accounts will allow business users to pay for services such as detailed analytical data about people visiting their pages.

Twitter launched the Promoted Tweets system in April, with five advertisers, and is in the process of adding another 12. It plans to increase this number in Q3 and Q4 to hundreds more.

But Twitter could decide to develop other business models in the future, depending on how the ads and commercial accounts perform, said Costolo.

Read more on E-commerce technology

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