Notes from the Twitter S-1 IPO Filing

The Twitterverse is buzzing about the upcoming Twitter IPO, and now we have all the intimate details courtesy of the S-1 IPO filing with the SEC. I’ve found Twitter to be an amazing medium that I use on a daily basis (@davidcummings), so I want the company to succeed in a way that grows both the value of the community and shareholder value.

Here are a few notes from the Twitter S-1 IPO filing:

  • 215 million monthly active users (pg. 1)
  • 500 million tweets per day (pg. 1)
  • 75% of users accessed it from a mobile device (pg. 2)
  • 45% of Super Bowl ads used hashtags to engage users (pg. 5)
  • 300 billion Tweets created since origination (pg. 6)
  • Revenue (pg. 10)
    2010 – $28.3M
    2011 – $106.3M
    2012 – $316.9M
  • Losses (pg. 10)
    2010 – $67.3M
    2011 – $129.8M
    2012 – $79.4M
  • 87% of revenue from advertising Promoted Tweets, Promoted Accounts, and Promoted Trends (pg. 16)
  • Accumulated deficit of $418.6M (pg. 24)
  • 2,000 employees (pg. 26)
  • 2011 FTC settlement that requires biennial security assessments for 20 years (pg. 31)
  • February 2013 attackers accessed 250,000 user records (pg. 32)
  • 6 U.S. patents issued and 80 patents pending (pg. 33)
  • 25% of revenue is international (pg. 60)
  • Equity ownership (pg. 144)
    Dick Costolo – 1.6%
    Jack Dorsey – 5%
    Benchmark Capital – 6.7%
    Evan Williams – 12%

Twitter’s IPO is going to do exceptionally well due to the large number of consumers that love the service and the fact that it’s an extremely fast growing technology business, which is in high demand.

What else? What are your thoughts on the Twitter S-1 IPO filing?

4 thoughts on “Notes from the Twitter S-1 IPO Filing

  1. Thank you for sharing this. All these figures are interesting. I’m impressed by the 500 million tweets per day. It’s huge !!!
    And I agree with y ou, Tweeter is very popular and I think that a lot of fans will buy some shares.

  2. I was struck (and always am since my background is finance) at how the R&D treatment (is it Operational Expense or Capital Expenditure?) can impact your view of a company’s profitability. 2ndly, around page 16 they discuss how they anticipate using the net proceeds of the offering (“Additionally, we may use a portion of the net proceeds to acquire businesses, products, services or technologies.”) I’d love to know how much of that investment is focused on expanding which revenue streams (ad revenue streams vs data services etc.)

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