Is Twitter Already Profitable?

Keep in mind that -- back in October -- Twitter forged search deals with Google (GOOG) and Microsoft (MSFT). The total amount came to $25 million.

This is actually the early stages of real-time search. In other words, Twitter allows you get a sense of the most relevant information now.

It also helps that Twitter gets 58 million visitors per month -- making the site a rich laboratory of information for marketers. Although, it looks like the company will go beyond advertising and offer premium products to corporations (such as analytics tools). Again, this could be a rich source of revenues.

So does this mean we can expect a Twitter IPO in 2010? Given its revenue traction, the company should have no problem raising money in the public markets. And, the fact that Twitter is focused on monetization -- and even taking steps to be vigilant on costs -- is yet another sign that an IPO is in the offing.

Tom Taulli advises on business tax preparation and resolving tax problems. He is also the author of a variety of books, including the including The Complete M&A Handbook. His website is at Taulli.com.