Seeking Alpha

Twitter files public S-1, looking to raise $1B

  • Twitter released its anticipated public S-1 this afternoon. The company is looking to raise $1B (that figure could rise in time), and list under the symbol TWTR. Underwriters include Goldman (the lead), Morgan Stanley, JPMorgan, BofA/Merrill, and Deutsche.
  • Twitter had 1H revenue of $253.6M (+107% Y/Y), and a net loss for the period of $69.5M. Ads accounted for $221.4M of 1H revenue, and data licensing the rest. Costs/expenses surged 87% to $316.5M, with R&D spend rising 142% to $111.8M (44% of revenue). With 2012 revenue having totaled $316.9M (+198%), 2013 sales should be north of $500M, and perhaps $600M.
  • The company had 218.3M monthly active users (MAUs) as of June 30, +44% Y/Y. Only 49M of them are in the U.S. Daily active users (DAUs) are north of 100M. AllThingsD reported in September MAUs are up to ~240M, and that Twitter is falling short of a year-end target of 400M. The company sees 500M+ tweets/day.
  • 150.9B timeline views were handled in Q2, +69% Y/Y. Timeline views/MAU rose 17% (higher engagement). The company estimates false/spam accounts make up 5% of MAUs. As of June 30, 75% of MAUs (164M) accessed Twitter using a mobile device, and 65% of ad revenue came from mobile.
  • By comparison, Facebook (FB) has 1H revenue of $3.27B, of which ad revenue made up $2.85B. The company had 1.15B MAUs at the end of Q2 (+21%), 699M DAUs, and 819M mobile MAUs. Mobile made up 41% of Q2 ad revenue. Facebook's 2013 revenue consensus is at $7.37B.
  • GSVC +3.7% AH in response to the filing. SVVC +1.5%.
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