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Key numbers to know before Twitter's IPO
by Jennifer Van Grove | November 5, 2013 4:14 AM PST
| Twitter becomes a public company on Thursday, but if you don't have the time or the stomach to leaf through1 the 200-plus page prospectus2 before then, here's a guide to get you past the clutter3. Price range: $23-$25 The social network is being far less conservative4 than initially planned, which should affect if much the stock pops on opening day. The range makes Twitter worth as much as $13.9 billion. The company may even price higher on the eve of its IPO. Proceeds: $1.62 billion-$1.86 billion This is how much Twitter will net from the sale of 70 million shares in the offering at a midpoint5 price of $24 per share. The larger amount includes proceeds from 10.5 million additional shares that underwriters6 have the option of selling. Monthly active users (MAUs): 231.7 million While Twitter continues to grow -- MAUs are up 39% from the year-ago quarter -- the company's annual user growth rate is in decline. Twitter is also still less than one-fifth the size of Facebook. Mobile MAUs: 175 million, or 76% of MAUs With more than three-fourths of Twitter's audience accessing the social network from smartphones or tablets, Twitter is, by definition, a mobile company. Investors need not worry about whether the company can monetize7 its massive mobile audience. In fact, 70% of Twitter's advertising revenue in the 3rd quarter was generated from mobile devices. Daily active users (DAUs): 100 million If you calculate engagement8 as the ratio of daily active users to mobile active users, as Facebook does, then Twitter's engagement rate is around 43%. That's not bad, but it's also not great. Facebook, for comparison, has an engagement rate of 61%. US MAUs: 52.7 million Twitter makes an extremely disproportionate9 amount of money from its US members. More than three-fourths of Twitter users (78%) are overseas, yet only 25% of its year-to-date10 (YTD) revenue -- or $106.7 million -- came from its international audience. YTD revenue: $422.2 million Twitter has grown revenue by 106% year over year, but the growth rate has decelerated from the previous year. YTD advertising revenue: $374.9 million, or 89% of revenue The company made a paltry11 $47.3 million from its only other business: data licensing. One could argue that Twitter needs to diversify its business in order to continue to grow revenue at a fast enough clip to please Wall Street. YTD net loss: $133.9 million Losses are increasing -- up 89% year over year -- and Twitter is a ways away from turning a profit. YTD adjusted EBITDA: $30.7 million If you exclude Twitter's expenses (stock, taxes, interest, depreciation12), this is the amount the company would have earned in the first 9 months of 2013. Average revenue per timeline view: 97 cents This is Twitter's primary metric for calculating the health of its business, and is a measure of advertising revenue for every 1,000 timeline views. The metric, when broken down by US and international timeline views, shows just how lopsided13 Twitter's business is. In the US, average revenue per timeline view is $2.58. Overseas, Twitter makes 36 cents per 1,000 timeline views. Q3 timeline views per MAU: 685 Timeline views are Twitter's be-all14, end-all15 metric for measuring attention. The company noticed just an 8% year-over-year growth in timeline views per user. Growth in US timeline views was just 2% from the year-ago quarter. Meanwhile, growth in timeline views in the rest of the world, where Twitter isn't adept16 at monetizing member attention, was 11%. Off-Twitter impressions: 48 billion Tweets have appeared on more than 1 million third-party Web sites, accounting for the 48 billion impressions taking place off Twitter. The additional exposure is good for Twitter. However, it's unclear if the extra attention has any affect on revenue as Twitter makes a majority of its money from the ads it serves to people inside its own desktop and mobile applications. |
1 leaf through: 翻閱 2 prospectus: 招股章程、發起書 3 clutter: 混亂 4 conservative: 保守的 5 midpoint: 中點 6 underwriter: 承購人、承銷商 7 monetize: 賺錢 8 engagement: 約束 9 disproportionate: 不成比例的 10 year-to-date: 年初至今 11 paltry: 微不足道的 12 depreciation: 折舊 13 lopsided: 不均衡 14 be-all: 重要的東西 15 end-all: 最終所有 16 adept: 擅長 |
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