The entrance to Twitter traded looks as the most awaited by the Silicon Valey operation since that wasted from Facebook . The microblogging social network based there 8 years, released Thursday, Oct. 3 its highly anticipated IPO project. Twitter hopes this operation up to $ 1 billion (€ 734 million). However, the social network revealed on this occasion he still losing money despite explosive growth.
The registration document for the introduction on the market, available in the U.S. stock gendarme (SEC) website states that the operation will take place "as soon as possible." The group, however, must meet a deadline at least 21 days before its leaders begin the tour of institutional investors and present their future titles. The entry should not take place before the end of October or early November.
As is usual at this stage of the procedure, a series of details, such as the number or price of shares are not yet determined. However, the document provides an interim order of magnitude, considering that the fundraiser could go up to a billion dollars.
Trading under the symbol TWTR
Beginning in 2013, the purchase by Blackrock , the world leader in asset management, participation in Twitter, valued the company at more than nine billion or € 6.8 billion. However, the strong evolution of Twitter suggests that the value of investments increased. On the secondary market, the company is valued in a range of 15 to 16 billion dollars, "said Michael Pachter , an analyst at Wedbush Securities, the newspaper Les Echos.
Twitter does not specify immediately if also opt for the Nasdaq or the concurrent introduction of the New York Stock Exchange, just saying it will be listed under the symbol "TWTR".
In issuing its IPO project, especially the social network gives the opportunity for investors to have for the first time details of its financial data, until a well-kept secret.
Every day, more than 100 million people publish an average of 500 million "tweets", these messages of 140 characters that are specific network. The network, which employs about 2,000 people, boasts 218 million active users at least once a month at the end of June, according to him represents an increase of 44% year on year.
The turnover has tripled its share last year to $ 317 million, and it already reached 253.6 million for the first six months of this year. For comparison, the world champion Facebook sector for the first half, with its more than one billion members, some $ 3.3 billion in revenue.
Uncertain profitability
Twitter also underlines its strength in mobile, an indicator closely followed by investors and Internet sector that has long been one of their major concern at Facebook. The network said to have generated more than 65% of its advertising revenue in the second quarter with its access on smartphones and tablets against 41% in its rival Facebook . Twitter is now dependent on advertising , which accounted for 85% of turnover in 2012 and 87% in the first half of 2013.
The network admits, however, a net loss of nearly $ 80 million in all of 2012, and 69.3 million for the first half of 2013 alone. "We may not be able to become or remain profitable," warns the social network in the section of the document which outlines the risks facing its future shareholders.
"Our financial performance is and will remain determined significantly by our ability to increase the number of users and their level of commitment to our platform, as well as the number of ads," there he says.
The group warns in particular that its results could suffer if the amount or interest published on its platform content decreased, and it loses its relevance to users.
The challenge for Twitter is to avoid repeating the mistakes of Facebook , whose introduction on the Nasdaq electronic platform last year had proved disastrous: the first session was punctuated by numerous technical problems, and during the action was quickly collapsed flux half months.
The course of the Facebook share is pressed that this was above its IPO price of $ 38, but seems to have recovered the bar again this week with a record high at $ 51.24.
