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.








  • 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

    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."



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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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>


smlbizman's picture

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

ihedgemyhedges's picture

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

NotApplicable's picture

I give up. Exactly how do they serve ads?

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

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.

knukles's picture

People are really gonna pay to own this shit?


At least Tulip Bulbs could result in a beautiful flower.

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.

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...

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 all around

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.

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.

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.

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.

max2205's picture

Another zero e and all P company....

CPL's picture

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

Skateboarder's picture

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

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. 

Thought Processor's picture


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

Cognitive Dissonance's picture

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

fonzannoon's picture

Ssshhh, nobody wants to hear that.

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

Toolshed's picture

So it is the best fad going then.

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. 

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.


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.

SAT 800's picture

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

Theta_Burn's picture

Where can i get thier catalog?

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

McMolotov's picture

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

Running On Bingo Fuel's picture

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

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.

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.

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. ;))

Skateboarder's picture

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

EmmittFitzhume's picture

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

Theta_Burn's picture


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...

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!

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.

pragmatic hobo's picture

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

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.

Rainman's picture

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

NOTaREALmerican's picture

Re:  just another mechanism for the transmission of bullshit

Bullshit makes the world go round.

Nothing is more valuable than bullshit.

A Lunatic's picture

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

dot_bust's picture


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

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

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

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Making everyone forget how to write complete sentences.

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

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Trimmed Hedge's picture

This shit is gonna triple within a year...