$1 billion IPO
Twitter said it aims to raise $1 billion through the initial public offering. However, that figure could very well change.
Here are some accumulated statistics from our scouring of the Twitter IPO filing for your perusal. The overall numbers show a company
Companies are required to declare how much they plan to raise, though they are by no means required to stick with those numbers. Facebook (FB +3.78%), for instance, initially said it sought $5 billion, but wound up pulling in $16 billion. Twitter has been valued at upwards of $10 billion.
Negative profits
Twitter's revenue has skyrocketed in recent years. In 2012, revenue leapt an incredible 198 percent from the year before, coming in at a hair under $317 million. Before going public, the company must first wait through a three-week quiet period. After a “road show” that markets shares, Twitter and its underwriters, led by Goldman Sachs, will set a price for them. Twitter stock won’t be available to the public, then, until November.
Twitter had reportedly been planning to raise $1.5 billion with an offering of 50 million to 55 million shares priced at $28 to $30 each. Its 2013 revenue had been estimated at $545 million by eMarketer, set to rise to $807 million in 2014.
Twitter said more than 65 percent of its advertising revenue came from mobile devices like tablets and smartphones. Because mobile advertising revenue is growing much more quickly than desktop advertising revenue in developed markets like the U.S., some believe Twitter has as a significant advantage over rivals like Facebook, which gleaned just 41 percent of ad revenue from mobile in its most recent quarter.
Twitter’s IPO filing marks its first release of revenue and profit figures, providing an unprecedented glimpse into the company’s financial health and growth prospects.
And the company reported earning $253 million in the first half of 2013, putting it on pace for another record year.
However, as is often the case with tech startups, it's actually losing money due to ballooning expenses. The company lost $79.4 million last year, and is already $69.3 million in the hole this year. All told, Twitter has rung up a $418.6 million deficit since its inception.
Powerful underwriters
Twitter's massive losses, though, won't scare away investors who are focused on the service's popularity. Financial titan Goldman Sachs is the lead underwriter, according to the filing. It's joined by Morgan Stanley, JPMorgan Chase, Bank of America, Merrill Lynch, Deutsche Bank, Allen & Co., and Code Advisors.
Massive user pool, but tapering growthlatest information on initial public offerings (IPOs), including latest IPOs, expected IPOs, recent filings, and IPO Performance
There were 218.3 million monthly active users on Twitter as of June 30, up 44 percent from the prior year, according to the filing.
However, Twitter acknowledged that it could not sustain such rapid growth going forward. With U.S. growth already slowing down, the company said it would look overseas, specifically to Argentina, France, Japan, Russia, Saudi Arabia, and South Africa, to expand its user base.
And Twitter warned that it would have to find ways to stay "useful, reliable, and trustworthy" or it would risk going down the same road as once-popular companies that have turned into morbid jokes.When you buy a stock on an IPO,It's like everyone who watches those gold stock commercials and all the talk radio announcers who pump this stuff out. You know it will go up for awhile then dramatically drop. I believe a 30% drop this year alone. Don't follow everyone and what they do like this, you are buying overinflated stock.. I also believe we will have another major market crash this decade. The price is awfully high and everyone is buying, the rich will get out at the right time wait for it to crash then buy it back up on the cheap. the early investors already got in at a far far far cheaper price then you and when you follow the crowd and buy stuff like this without checking their true revenue model, you will end up losing bigtime in the end. Facebook is the perfect example.
Wall Street, where investors were so anxious about the social media company, which disclosed its initial public offering filing on Thursday, that they funneled money into the wrong company. That's right, the consumer electronics company Tweeter Home Entertainment Group saw its stock price rise 684 percent on Friday, according to MarketWatch.
In short, "if people get bored and drift off, the company will have problems," says The Wall Street Journal's Paul Vigna.
We don't know for sure why Tweeter's stock skyrocketed. But considering the company filed for bankruptcy in 2007 and went out of business in 2008, according to CNNMoney, we're guessing it has something to do with Tweeter's ticker symbol, TWTRQ, which is only one letter off from Twitter's future ticker, TWTR
Reliance on ad dollars , Twitter is looking to raise $1 billion from outside investors. The company generated $317 million in revenue last year.In making public its prospectus, Twitter sets the clock on one of the most anticipated stock sales of the year and shows how important mobile
Almost all of Twitter's revenue comes from advertisements. According to the filing, 85 percent of all revenue last year, and 87 percent through June of this year, came from ads.
Further, "substantially all" of that ad money came from promoted tweets, accounts, and trends. Though you may glaze over #GoSeeThisCoolNewMovie when it pops up as a trending topic, Twitter banks a ton of money by boosting it to prominence.
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