December 12, 2013
Before listing on the nyc stock exchangeThursday, October 17, 2013
Twitter triples its quarterly losses
SAN FRANCISCO — Twitter revealed yesterday a tripling in quarterly losses as it prepares to list on the New York Stock Exchange in one of the year’s most anticipated IPOs.
The company more than doubled its third-quarter revenue to US$168.6 million. But net losses widened to US$64.6 million in the September quarter compared with US$21.6 million a year earlier.
And in the three months ended September, Twitter grew its monthly active users 39 percent to 231.7 million on average. That figure was up from about 218 million when the company first disclosed its IPO filing on October 3.
Those losses were driven partly by a 158 percent surge in sales and marketing spending, as the company ramped up its sales forces in offices around the world to push its advertising platform. Sales and marketing costs rose to US$61.2 million from US$23.7 million a year earlier.
Twitter said its revenue is increasingly coming from mobile devices, the preferred way for most users to log on. In the three months ending through September, over 70 percent of advertising revenue came from phones and tablets versus 65 percent in the prior quarter.
The online messaging service’s decision to go with the older exchange deals a blow to the tech-heavy Nasdaq, which bungled Facebook Inc’s 2012 offering. Twitter is now expected to kick off its investor roadshow on October 28 where it will pitch its offering to Wall Street before shares start trade in mid-November, two sources familiar with the situation said yesterday.
Twitter’s debut will be the culmination of a journey from side-project to sociocultural phenomenon, one that has become a communications channel for everyone from the Pope to President Barack Obama.