Twitter files for $1B IPO, mobile users fueling 65% of ad revenues
Less than a month after revealing its plans to go public, Twitter has made its S-1 filing with the Securities and Exchange Commission public, revealing the microblogging platform aims to raise $1 billion on close to 473 million shares of common stock.
According to the S-1 document, Twitter revenues almost tripled to $316.9 million in 2012, fueled largely by its advertising efforts, with net losses reaching $79.4 million. In the first half of 2013, revenues increased to $253.6 million but losses totaled $69.3 million. Twitter's monthly active users now exceed 215 million, up 44 percent from 151.4 million in June 2012; MAUs post more than 500 million tweets per day, and 75 percent access the platform via mobile device.
Mobile traffic now drives 65 percent of all Twitter ad revenues, the filing adds. In mid-September, Twitter acquired mobile advertising exchange MoPub for a reported $350 million in stock in an effort to further accelerate its mobile aspirations.
Twitter pulled in average revenue per user of 64 cents during the second quarter of 2013, compared to $1.60 for social media rival Facebook (NASDAQ:FB), according to Reuters calculations. Losses are "a non-issue," according to Brian Wieser, analyst at Pivotal Research Group: "It would have been a surprise if they had a profit. Here's the number that really matters. It's the revenue per customer. The question is how much is the typical commitment they're getting from advertisers at this time."
Twitter will trade under the stock symbol TWTR. Co-founder and former CEO Evan Williams holds 12 percent of the company; chairman and co-founder Jack Dorsey controls 4.9 percent, and current CEO Dick Costolo holds 1.6 percent. Peter Fenton, the board member representative of investment firm Benchmark Capital, controls 6.7 percent.
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