The Stanly News and Press (Albemarle, NC)

State & National News

October 17, 2013

Twitter third-quarter revenue more than doubles before IPO

Thursday, October 17, 2013 — Twitter continued its torrid growth pace ahead of an initial public offering, as the microblogging service said revenue more than doubled in the third quarter even as losses widened.

The San Francisco-based company said in a filing that its revenue was $168.6 million in the period, up from $82.3 million a year ago. Its net loss expanded to $64.6 million from $21.6 million.

The filing gives investors another report card on the health of Twitter's business as the company readies for what has become the most-anticipated U.S. technology offering since Facebook last year. While Twitter now pervades popular culture, it is still in the early stages of building its advertising business and faces more competition in social media.

"Near-term you're going to see this company grow very quickly," Robert Peck, an analyst at SunTrust Robinson Humphrey, said in an interview before the filing was released. "Before they can be profitable, they still have a long way to invest in their infrastructure and the future of the platform."

The company is seeking to raise more than $1 billion in its IPO, people with knowledge of the matter have said. Twitter will probably start a roadshow with bankers to promote the deal in the last week of October, said the people, who asked not to be identified because the details aren't public.

In the filing, Twitter also boosted the tally of people using its service, to more than 230 million users per month, up from 215 million.

The document also showed the company is deriving a greater share of its revenue from mobile devices than just a quarter ago. More than 70 percent of advertising revenue came from mobile devices in the third quarter, compared with 65 percent in the second quarter.

The filing updated the shareholder list with the amount owned by major backers. Entities affiliated with Rizvi Travers, which include funds managed by investor Chris Sacca, control 17.9 percent, more than any individual or institution. JPMorgan Chase & Co. and affiliates own 10.3 percent, followed by venture-capital firms Spark Capital with 6.8 percent, Benchmark with 6.6 percent and Union Square Ventures with 5.9 percent. DST Global, founded by Russian billionaire Yuri Milner, owns 5 percent.

Twitter also added 300 employees, for a total of 2,300. The hiring spurred a jump in unrecognized stock-based compensation expenses from restricted stock units, which rose to $698.3 million, up from $297 million three months ago, according to the filing.

As it ramps up growth, Twitter's spending is exceeding that of other Internet companies as a percentage of revenue. In the third quarter, Twitter spent more than half of its revenue on research and development. In the second quarter, the latest for which numbers are available, Facebook spent 19 percent of revenue on research and development, while Google Inc. spent 14 percent.

Twitter said it was trimming spending in other areas. The company's capital expenditure projection for 2013 was revised to between $215 million and $235 million, down from $225 million to $275 million previously.

The company, which has nine patents, has filed 95 applications in the U.S. as of Sept. 30, up from 80 last quarter.

Twitter also chose to list its shares on the New York Stock Exchange. The NYSE Euronext market won the listing about 17 months after Facebook started trading on Nasdaq OMX Group Inc.'s rival platform, a debut marred by a software malfunction that delayed trading.

1
Text Only
State & National News
  • linda-ronstadt.jpg Obama had crush on First Lady of Rock

    Linda Ronstadt remained composed as she walked up to claim her National Medal of Arts at a White House ceremony Monday afternoon.

    July 29, 2014 1 Photo

  • Brother sues W.Va. senator over business loan

    FAIRMONT, W. Va. - U.S. Sen. Joe Manchin's brother claims he's owed $1.7 million that he loaned to keep a family carpet out of bankruptcy in the 1980s.

    July 28, 2014

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 28, 2014 1 Photo

  • WORLD NEWS: Fast food comes to standstill in China

    BEIJING - The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 28, 2014

  • Facebook continues moneymaking trend

    WASHINGTON - Facebook seems to have figured out - for now at least - the holy grail for all media right now: how to make money selling mobile ads.

    July 25, 2014

  • Arizona's prolonged lethal injection is fourth in U.S. this year

    NEW YORK - Arizona's execution of double-murderer Joseph Wood marked the fourth time this year that a state failed to dispatch a convict efficiently, according to the Constitution Project, a bipartisan legal group.

    July 25, 2014

  • N.C. Energy Policy Council Long Range Energy Generation and Renewable Energy Committee to meet

    RALEIGH – The North Carolina Energy Policy Council’s Long Range Energy Generation and Renewable Energy Committee will meet via conference call at 9 a.m. July 31.

    July 24, 2014

  • N.C. State University Turfgrass Field Day set for Aug. 13

    N.C. State University’s annual Turfgrass Field Day will be held in Raleigh at the Lake Wheeler Turfgrass Research Lab, Aug. 13, 8:30 a.m. - 2 p.m. One of the largest events of its kind in the country, the field day offers the industry and general public a chance to view the Turfgrass Program’s ongoing research trials and speak directly with N.C. State faculty and staff.

    July 24, 2014

  • NCSU Study: Urban Heat Boosts Some Pest Populations 200-Fold, Killing Red Maples

                New research from North Carolina State University shows that urban “heat islands” are slowly killing red maples in the southeastern United States. One factor is that researchers have found warmer temperatures increase the number of young produced by the gloomy scale insect – a significant tree pest – by 300 percent, which in turn leads to 200 times more adult gloomy scales on urban trees.

    July 23, 2014

  • An oncologist uses scorpion venom to locate cancer cells

    Olson, a pediatric oncologist and research scientist in Seattle, has developed a compound he calls Tumor Paint. When injected into a cancer patient, it seems to light up all the malignant cells so surgeons can easily locate and excise them.

    July 22, 2014

House Ads
Seasonal Content