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Twitter Files S-1 Statement, Lists $1 Billion Initial Offering Amount: Here Comes "Revenue Per Timeline View"

Tyler Durden's picture




 

And the long-awaited Twitter, or make that TWTR, S-1 filing is finally here (link).

Some of the highlights:

  • We have more than 215 million monthly active users, or MAUs, and more than 100 million daily active users, spanning nearly every country. Our users include millions of people from around the world, as well as influential individuals and organizations, such as world leaders, government officials, celebrities, athletes, journalists, sports teams, media outlets and brands. Our users create approximately 500 million Tweets every day.

     

    LOGO

    LOGO

     

     

      

    LOGO

  • Forget pageviews, here comes a "new" valuation methodology: Timeline Views, Timeline Views Per MAU and Advertising Revenue Per Timeline View

    We define advertising revenue per timeline view as advertising revenue per 1,000 timeline views during the applicable period. We believe that advertising revenue per timeline view is a measure of our ability to monetize our platform. In the three months ended June 30, 2013, our advertising revenue per timeline view was $0.80, which represents a 26% increase from the three months ended June 30, 2012. In the three months ended June 30, 2013, our advertising revenue per timeline view in the United States was $2.17 and our advertising revenue per timeline view in the rest of the world was $0.30, which represent increases of 26% and 111% from the three months ended June 30, 2012, respectively. We record advertising revenue based on the billing location of our advertisers, rather than the location of our users.

    We define timeline views as the total number of timelines requested when registered users visit Twitter, refresh a timeline or view search results while logged in on our website, mobile website or desktop or mobile applications (excluding our TweetDeck and Mac clients, as we do not fully track this data). We believe that timeline views and timeline views per MAU are measures of user engagement. Timeline views per MAU are calculated by dividing the total timeline views for the period by the average MAUs for the last three months of such period. In the three months and six months ended June 30, 2013, we had 150.9 billion and 287.2 billion timeline views, respectively, which represent increases of 69% and 79% from the three months and six months ended June 30, 2012, respectively. In the three months and six months ended June 30, 2013, we had 40.6 billion and 80.2 billion timeline views in the United States, respectively, which represent increases of 45% and 57% from the three months and six months ended June 30, 2012, respectively. In the three months and six months ended June 30, 2013, we had 110.3 billion and 207.1 billion timeline views in the rest of the world, respectively, which represent increases of 79% and 89% from the three months and six months ended June 30, 2012, respectively.

  • LOGO   LOGO
  • LOGO

    From 2011 to 2012, revenue increased by 198% to $316.9 million, net loss decreased by 38% to $79.4 million and Adjusted EBITDA increased by 149% to $21.2 million.

  • In the three months ended June 30, 2013, over 65% of our advertising revenue was generated from mobile devices
  • From the six months ended June 30, 2012 to the six months ended June 30, 2013, revenue increased by 107% to $253.6 million, net loss increased by 41% to $69.3 million and Adjusted EBITDA increased by $20.7 million to $21.4 million.
  • As of June 30, 2013, we had $375.1 million of cash, cash equivalents and marketable securities, of which $27.8 million was held by our foreign subsidiaries. Cash equivalents and marketable securities are comprised of our investments in short-term and long-term interest-bearing obligations, including government and investment-grade debt securities and money market funds. 
  • TWTR has raised $759.2MM in Series A thru G convertible preferred stock rounds
  • Detailed financial breakdown:

  • Taking a stab at Facebook:  "In the mid-2000s, social networks, such as Facebook, emerged as a new way to connect with friends and family online, but they are generally closed, private networks that do not include content from outside a person’s friends, family and mutual connections. Consequently, the depth and breadth of content available to people is generally limited. Additionally, content from most social networks is not broadly available off their networks, such as on other websites, applications or traditional media outlets like television, radio and print."

Twitter's value proposition to advertisers: "We provide compelling value to our advertisers by delivering the ability to reach a large global audience through our unique set of advertising services, the ability to target ads based on our deep understanding of our users and the opportunity to generate significant earned media. Advertisers can use Twitter to communicate directly with their followers for free, but many choose to purchase our advertising services to reach a broader audience and further promote their brands, products and services."

LOGO

 

IPO Use Of Proceeds:

We intend to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures. We anticipate making capital expenditures in 2013 of approximately $225 million to $275 million, and we may use a portion of the net proceeds to fund our anticipated capital expenditures.

 

Pre-Money Equity ownership:

 

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Thu, 10/03/2013 - 17:18 | 4020355 Cognitive Dissonance
Cognitive Dissonance's picture

Put Cognitive Dissonance down for one share and one share only.

<The annual shareholders meeting should be a twitter riot.....a must attend in my book>

/sarc

Thu, 10/03/2013 - 17:18 | 4020365 smlbizman
smlbizman's picture

do they come under the umbrella were they dont have to prove any financials for 5 yrs?

Thu, 10/03/2013 - 17:21 | 4020383 ihedgemyhedges
ihedgemyhedges's picture

So tonight I'm gonna party like it's 1999..........

Thu, 10/03/2013 - 17:25 | 4020396 NotApplicable
NotApplicable's picture

I give up. Exactly how do they serve ads?

Thu, 10/03/2013 - 17:31 | 4020415 Thought Processor
Thought Processor's picture

 

 

Let's see if they can squeeze the IPO in before the crash.

 

They can be famous for bookending the whole internet IPO orgy.

1995-2013  Netscape to Twitter.

RIP internet IPO.  RIP

Thu, 10/03/2013 - 17:53 | 4020490 NOTaREALmerican
NOTaREALmerican's picture

Re:  RIP internet IPO.  RIP

The initials might change, but there will never be a shortage of gamblers and there will never be a shortage of sociopaths figuring out a way to screw them.

That's what markets are:   sociopaths screwing dumbass gamblers.   Been that way for a many thousand years now.

Thu, 10/03/2013 - 17:54 | 4020493 knukles
knukles's picture

People are really gonna pay to own this shit?

 

At least Tulip Bulbs could result in a beautiful flower.

Thu, 10/03/2013 - 18:21 | 4020564 NOTaREALmerican
NOTaREALmerican's picture

Re:  People are really gonna pay to own this shit?

Are you serious?   Twitter is the perfect social media for dumbass extroverts who can't stop talking and talking and talking.

The smart-n-savvy extroverts rule the earth because they create bullshit.

Bullshit is extremely valuable because sociopathic extroverts can deliver bullshit into the brains of dumbasses and manipulate them; which is all politics, religion, and advertising is.

Now, what delivers bullshit faster than twitter?   

We have the society we have because bullshit is used to control the dumbasses.   Bullshit is running things.  NOT the illuminati,   not the Fed.   It's the bullshit.   Hmans are addicted to it.   We couldn't be sane without HUGE quantities of bullshit.

Thu, 10/03/2013 - 18:30 | 4020602 VD
VD's picture

NOTaREALmericanbased on your above it's a no-brainer trade! so wtf r u waiting for genius? save up some pennies and throw some skin in this game or stfu. 

 

and who's the extrovert typing on ZH about Twitter extroverts¿¿¿ duh...

Thu, 10/03/2013 - 18:55 | 4020717 knukles
knukles's picture

OK... Fess up you fuckers.  Who nailed NARA with the red arrows, the down votes?  Huh?  That's probably the best description of the marginal utility of social media that I've yet ever run across.  Altho could use a bit more elucidation as to narcissism and ego-centric, juvenile, immature and insecure behavior of participants who wind up totally fucking incapable of interpersonal human interaction.
But still, best yet and a bazillion ++++++++++++++++s

 

And don't forget, these are tolls, basic and powerful tools of the NerSucksAgony that one gets to piss one's very own secret information out into the public and now pay to do so, so as to be tracked in real time by the people who taketh away your very rights and lefts.

Assholes

Assholes all around

Thu, 10/03/2013 - 19:55 | 4020938 SAT 800
SAT 800's picture

There's a lot in what you say. A population with a short attention span and no training in rational thinking is easily overwhelmed by the constant stream of meaningless static. "Twitter traffic"--Where are you? Havnt heard from U for 10 minutes?---Upstairs--- Upstairs where?---In the Upstaris bathroom---OH, alright then--, and so forth and so on and so on.

Thu, 10/03/2013 - 18:42 | 4020676 twh99
twh99's picture

It's not that they are going to pay for it, but look at the valuation.  It is over 47 time EBITDA!?!  That is obscene.

Thu, 10/03/2013 - 19:28 | 4020861 SAT 800
SAT 800's picture

This kind of IPO is a perfect indicator of a major market top; they know very well they have very little time left to find dazed and confused buyers before "buying" suddenly goes out of style.

Thu, 10/03/2013 - 17:21 | 4020385 CPL
CPL's picture

It's Thursday's rules which are different from Wednesday rules, but similar to Tuesday's rules.  Except on Friday's which follow Monday's rules.  Gotta follow those rules or things might get confusing.

Here have a party hat.

Thu, 10/03/2013 - 17:54 | 4020496 max2205
max2205's picture

Another zero e and all P company....

Thu, 10/03/2013 - 18:41 | 4020670 CPL
CPL's picture

Amazing they are allowed to keep pushing this type of crap after dot.bomb.

Thu, 10/03/2013 - 18:59 | 4020749 Skateboarder
Skateboarder's picture

This one's got bigass twitties. You know what that does to people.

Thu, 10/03/2013 - 17:24 | 4020389 VD
VD's picture

twitter is the only social media tool that's actually quite effective, Icahn bs fraud case in point. as such, being radically superior to facebook i fear it may not do as well...

 

twitter is best of all social media; hedge accordingly. 

Thu, 10/03/2013 - 17:33 | 4020421 Thought Processor
Thought Processor's picture

 

I actually agree with this.   Twitter is the only one worth anything, and they seem to be managed well also.

Thu, 10/03/2013 - 17:34 | 4020433 Cognitive Dissonance
Cognitive Dissonance's picture

Expect that to end once they start managing to the "What have you done me for this quarter" earnings charade.

Thu, 10/03/2013 - 17:34 | 4020435 fonzannoon
fonzannoon's picture

Ssshhh, nobody wants to hear that.

Thu, 10/03/2013 - 18:19 | 4020573 VD
VD's picture

yeah up in here some don't want to hear that, but i tell you as a user of twitter it's the shit. facebook i despised since day one and never would think of creating an account on it. from an investment perspective Twitter should soar over FB, but the real world has way of defeating the superior offerings. i am dithering on this trade....

 

fresh from zerohedge TWEET: TWTR has raised $759.2MM in Series A thru G convertible preferred stock rounds

Thu, 10/03/2013 - 18:01 | 4020517 Toolshed
Toolshed's picture

So it is the best fad going then.

Thu, 10/03/2013 - 17:39 | 4020448 Nothing but the...
Nothing but the truth.'s picture

Another Farcebook, faddish operator. Still cannot get my head around these social media offerings and exactly how they hope to generate profits. 

Thu, 10/03/2013 - 17:49 | 4020480 Skateboarder
Skateboarder's picture

Accidental ad clicks, of course.

Thu, 10/03/2013 - 17:57 | 4020503 NOTaREALmerican
NOTaREALmerican's picture

Re:  generate profits

Well,  assuming they are nothing but the railroad scam run on the dumbasses 100+ years ago, the drill is:

1) Sell fantasy to the dumbasses.

2) Bullshitters and sociopaths get out.

3) Bankruptcy

4) Drones come in and run a boring business trying to screw the customers anyway they can for generation after generation.

 

Thu, 10/03/2013 - 18:01 | 4020513 Toolshed
Toolshed's picture

Just visualize sheepherders.

Thu, 10/03/2013 - 19:32 | 4020873 SAT 800
SAT 800's picture

They advertise to their major users; fifteen year olds who live in their mother's basement, and have to ask dad for a loan for a new bicycle tire. If anyone actually wants to buy anything, they look on Amazon, like a normal person. It's Pets' R Us, all over again.

Thu, 10/03/2013 - 19:51 | 4020930 SAT 800
SAT 800's picture

By selling Stock! You don't think that's a profit for the originators of the scam?

Thu, 10/03/2013 - 17:17 | 4020358 Theta_Burn
Theta_Burn's picture

Where can i get thier catalog?

They must make awsome consumer goods for an offering like this....

Thu, 10/03/2013 - 17:22 | 4020378 McMolotov
McMolotov's picture

Twatter and Facefuck are the two pillars of our robust, productive economy.

Thu, 10/03/2013 - 17:38 | 4020451 Running On Bing...
Running On Bingo Fuel's picture

Worth a billion, Captain Kirk from NSA said so...

Thu, 10/03/2013 - 17:28 | 4020399 CPL
CPL's picture

Here have some samples, I just got them.

<gives nothing>

Don't lose them.  Best to keep them with other prime maturing investments like beanie babies, gravel and cigarette butts.

Thu, 10/03/2013 - 17:41 | 4020441 Cognitive Dissonance
Cognitive Dissonance's picture

I've got some vintage Marlboro butts from the early 70's if you're interested. Free shipping if you buy today.

Thu, 10/03/2013 - 18:06 | 4020538 Spastica Rex
Spastica Rex's picture

Reds?

Thu, 10/03/2013 - 18:20 | 4020579 Cognitive Dissonance
Cognitive Dissonance's picture

Yes. And they still have the original ash tray smell even after all these years. Classics and I'm letting them go for a song if you act today. I need to sell cus Mrs Cog needs a new pair of mucking boots. ;))

Thu, 10/03/2013 - 19:21 | 4020839 Skateboarder
Skateboarder's picture

Rehypothecated a couple of hundred times, those butts are worth like what, $30M?

Thu, 10/03/2013 - 17:19 | 4020360 fonzannoon
Thu, 10/03/2013 - 17:17 | 4020368 DoChenRollingBearing
DoChenRollingBearing's picture

No gracias!

#Suckerz!

Thu, 10/03/2013 - 17:21 | 4020371 EmmittFitzhume
EmmittFitzhume's picture

FED needs somewhere to put all this Phunny Money.  PCLN is a gettin little expensive at $1000

Thu, 10/03/2013 - 17:26 | 4020400 Theta_Burn
Theta_Burn's picture

Figures

I bust my balls, to create structures and components, i employ people, i endlessly chase my fucking money, which, at the end of the month barely pays the bills, and if i'm actually busy, that means i was the low bid chump.

Then i see the millions being made by creating nothing...

Thu, 10/03/2013 - 18:02 | 4020521 NOTaREALmerican
NOTaREALmerican's picture

Re:  Then i see the millions being made by creating nothing

The most valuable thing you can make is bullshit.

Government + bullshit = politics

Morals + bullshit = religion.

stuff + bullshit = advertising.

Who makes more, those making the stuff or those making the bullshit.  

Bullshit, ask for it by name!

Thu, 10/03/2013 - 19:46 | 4020916 SAT 800
SAT 800's picture

I remember when I was a boy genius; freshly hired by a corp. with major defense dept. missile contracts; they gave me a form to sign saying anything you invent belongs to us; I couldn't believe it. I was all influenced by Thom Edison, and the survival of the fitest; (me!), and rewards for the better mouse trap, and all that stuff; and then I run into this. I quit after pulling one major missile contract out of the waste basket for them, and finding out I really wasn't going to get paid; not only that my invention was a top secret and I couldn't even tell anyone about it. Completely dis-illusioned, I realized that there was no free competition, no reward, and capitalism seemed to have changed into some kind of make believe designed to allow big corporations to co-exist peacefully without accomplishing much; and with horrendous overhead. And that was fifty years ago. I decided to become a full time speculator when I got a small inheritance from my grandfather; but it didn't turn out to be a full time job, so I had a lot of time to spend on sailboats and airplanes and long vacations. Could of been worse. I could of retired as senior engineer in charge of eating shit from the juvenile delinquents in gray flannel suits in the front offices.

Thu, 10/03/2013 - 17:27 | 4020398 pragmatic hobo
pragmatic hobo's picture

I'll be sure to stay away from this pile of dog shit ...

Thu, 10/03/2013 - 17:34 | 4020432 fonzannoon
fonzannoon's picture

I will probably buy it hand over fist. I am done fighting this. Sometimes I walk my dog and she stops and sniffs something awful. Before I realize what is going on she just starts rolling around in some shit smelling thing. She is generally much happier than I am. I am just going to start rolling around in shit too.

Thu, 10/03/2013 - 17:32 | 4020418 Rainman
Rainman's picture

Twitter....just another mechanism for the transmission of bullshit.

Thu, 10/03/2013 - 18:04 | 4020527 NOTaREALmerican
NOTaREALmerican's picture

Re:  just another mechanism for the transmission of bullshit

Bullshit makes the world go round.

Nothing is more valuable than bullshit.

Thu, 10/03/2013 - 17:34 | 4020426 A Lunatic
A Lunatic's picture

Investing in Twitter will leave your portfolio in tatters, bitchez...........

Thu, 10/03/2013 - 17:34 | 4020430 dot_bust
dot_bust's picture

Tweets

Twitter @Twitter
Tried to file for an IPO. Couldn't fit the S-1 statement here. Feel like a twit...

Reply   Retweet   Favorite   *** More

Twitter @Twitter
Having trouble explaining how our company generates actual revenue.

Reply   Retweet   Favorite   *** More

Twitter @Twitter
Destroying the English language one truncated sentence at a time.

Reply   Retweet   Favorite   *** More


Twitter
@Twitter
Making everyone forget how to write complete sentences.

Reply   Retweet   Favorite   *** More

Twitter @Twitter
LOL. ROFL. LMAO. Oops, those aren't really words.

Reply   Retweet   Favorite   *** More

Thu, 10/03/2013 - 17:38 | 4020449 Trimmed Hedge
Trimmed Hedge's picture

This shit is gonna triple within a year...

Thu, 10/03/2013 - 18:53 | 4020727 DarthVaderMentor
DarthVaderMentor's picture

and then collapse like a used condom......

Thu, 10/03/2013 - 17:46 | 4020475 Atomizer
Atomizer's picture

Monty Python- Lumberjack Song.  Substitute the word Lumberjack for Twitter Twat.

Thu, 10/03/2013 - 17:55 | 4020492 syntaxterror
syntaxterror's picture

Install AD BLOCKER and drive the cost of the initial offering to $0.00.

Thu, 10/03/2013 - 18:24 | 4020598 i8emallup
i8emallup's picture

I guess if I was them I would sell, too.  

Thu, 10/03/2013 - 18:33 | 4020622 DarthVaderMentor
DarthVaderMentor's picture

This is the IPO that signals the arrival of the pop of the equity bubble. Pure Madison Avenue BS revenue based on twits twittering nonsense to the masses of sheeple. When the fleeced sheep investors realize there's no substance or logic in the business case it and the rest of the market will be an epic pop and collapse.

Thu, 10/03/2013 - 18:51 | 4020698 Zer0head
Zer0head's picture
How To Buy A Ton of Twitter Followers

 

http://www.fastcompany.com/3000359/buying-twitter-followers-beware-statu...

http://fiverr.com/everythinggirl/provide-you-50-followers-having-verifie...

  • 350+ Gigs sold
  • 100+ positive reviews
  • 100% Gig rating
  • Expected delivery: 3 days
  • For $5, I will provide you 60 Verified Twitter Followers
Thu, 10/03/2013 - 18:42 | 4020677 Seize Mars
Seize Mars's picture

Million!
Billion!
MillionBillion!
MillionZillionBillion!
(Choking sound...crying a little to myself)
Trillion?

Thu, 10/03/2013 - 18:45 | 4020696 Seize Mars
Seize Mars's picture

The twitter IPO will revolutionize online shitting.
http://www.theonion.com/articles/new-etoilet-to-revolutionize-online-shi...

Thu, 10/03/2013 - 18:47 | 4020702 Seize Mars
Seize Mars's picture

Who the crap is going to buy this shit?
This bullshit is fucking epic. It's almost as good as DrKoop.com; remember that shit?

Thu, 10/03/2013 - 18:53 | 4020725 syntaxterror
syntaxterror's picture

The modern day equivalent of the Pet Rock. 

Thu, 10/03/2013 - 19:46 | 4020914 All Out Of Bubblegum
All Out Of Bubblegum's picture

The only reason to buy Twitter is if you're long on surveillance.

Do NOT follow this link or you will be banned from the site!