Twitter Filing Reveals Plans To Raise $1B With IPO, Net Loss For First Half Of 2013
In the midst of all the talk about the government shutdown and the melee in Washington DC, big Twitter news almost slipped beneath the radar: After announcing plans to go public last month, the company submitted paperwork late yesterday. The media has been combing through the details and the first big takeaway is the social networking site’s plans to raise $1 billion in its IPO. The stock ticker will be TWTR (not TWIT). And Goldman Sachs, Morgan Stanley, and JP Morgan are the banks handling the public offering.
There are also some financials for those who are curious about whether Twitter actually makes any money. The company says it had revenue of $254 million for the six months ending June 30, a number that’s below the $310 million that one analyst who spoke with USA Today was expecting. However, that’s twice the amount — $122 million — reported for the same period in 2012. Growth is important. Net loss for the company — the amount the company is spending to grow, according to that same analyst — was 40 percent more than last year, totaling $69 million.
“Twitter’s annual revenue may be about $600 million this year, while social media rival Facebook generated more than $5 billion in revenue last year,” the paper reports. Facebook’s IPO was the largest in recent history. It’s now valued at $16 billion.
Both USA Today and The Wall Street Journal say that, besides the financial hurdles, the company has to overcome a lack of understanding among investors of what exactly it is. Sources for both papers say that many on Wall Street probably hadn’t used Twitter before the IPO announcement last month. The company values itself at $9.7 billion and says it has 215 million users. (Facebook had 845 million at the time of its IPO.)
Total aside, it seemed like every one of them was tweeting about Scandal last night. That season premiere!! Oh how I’ve missed that show.
In addition to Scandal fans and Black Twitter, the service is used by many in the media industry (journalists, publicists, etc), politicians and celebrities, and companies to share breaking news and execute campaigns. A major goal, the company says, is to make it easier to understand so more people will join. The company also made $47 million last year licensing its data for analysis.