back to article Twitter spills unprofitable guts in $1bn IPO filing

Curt babble network Twitter hopes to raise $1bn in its initial public offering, according to the company's S-1 filing. The company revealed on Thursday in an filing with the US Securities and Exchange Commission (SEC) that it is unprofitable, has racked up a deficit of $418.6m, and expects its revenue growth to slow further. But …

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I doubt this will be much of a surprise to anyone

They've been sinking investors money into this company for years with nothing to show for it. I fail to see how they can value a company a company at $10 billion which consistently loses money year after year and only has earnings of $316 million which would be fine if they didn't spend $418 million making it. I know they have a lot of users, but user value is not worth $10 billion unless they are actually creating value and profit, which in this case they aren't. I get the feeling the IPO is more of an escape route for the current investors.

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Mushroom

Re: I doubt this will be much of a surprise to anyone

_All_ IPO's are an exit strategy for the existing investors.

Social media sites like facebook and twitter don't need to turn a profit initially. They work on the same principle as drug dealers. You start by offering a free fix, move on to habituate your mark and once they're hooked, slowly start degrading the fix by introducing toxic substances that increase your profit margin. This is a proven model.

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Re: I doubt this will be much of a surprise to anyone

"You start by offering a free fix, move on to habituate your mark and once they're hooked, slowly start degrading the fix by introducing toxic substances that increase your profit margin. This is a proven mode"

Not so sure. I still use Google via Apple Mail because I can switch off almost all the ads. And now that Imstagram are going to start sending ads - well, it's been fun, but... Goodnight Vienna.

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Re: I doubt this will be much of a surprise to anyone

I'm always suprised by this type of comment;

"And now that Imstagram are going to start sending ads - well, it's been fun, but... Goodnight Vienna."

For these services that you use and no doubt enjoy for free, how are they expected to pay for themselves?

A revenue model has to be applied for them to continue to exist and I doubt you'll pay a subscription, so what else should they do?

And you are willing to not use a service because of some adverts? I assume you ad block El Reg as well?

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@ Jack Clark

If you were to look here: http://www.theregister.co.uk/2013/09/04/useful_twitter_functions_vanish/ you would see that a few weeks ago, Kelly Fiveash cleverly dubbed Twitter a "natter emitter". I am sure that you will understand why any sensible person would consider this phrase to be far, far superior to "Curt babble network".

So let's please stick to that, 'kay?

Thanks in advance!

: )

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Re: @ Jack Clark

"Curt babble" is good. I like El Reg's wordsmithery. I have a feeling the perpetrators are Scottish, there is a national predilection for beating the fair Saxon tongue into strange new shapes.

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Where did the money go?

No really, where? They have a system with one table database, two columns, max single record of 140 characters. They need a good managed hosting, one developer for their website, one for mobile, and if they want to be fancy a dedicated designer. We're talking about 5 people company + managed hosting with extremely high bandwidth bill. Still, it can't amount to what they burn, not even close.

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Anonymous Coward

Re: Where did the money go?

Where all money goes eventually: hookers and blow.

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Silver badge

Re: Where did the money go?

> They have a system with one table database, two columns, max single record of 140 characters

Not at that volume, we don't.

And you would be surprised at the money that even a company housed in a shed can burn through.

As for the "5 people company". Do you really expect much happening in a 5 people company unless you outsource pretty much everything?

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Anonymous Coward

what idiot should buy Twitter?

Google plus has 3x mute active users. Twitter is a relative ghost town, and sinking fast. Stephen fry is putting out the deck chairs.

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Anonymous Coward

Re: what idiot should buy Twitter?

What idiot should buy Twitter?

The kind of idiot who believes comments like yours, left on the interwebs.

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Anonymous Coward

Re: what idiot should buy Twitter?

A friend of mine recently suggest Google Plus was a ghost town. I asked him how many circles he was in, what communities he had joined and he said "duh what?" I then asked him how many people he was following, he cluelessly said about 70..

It was totally lost on him that if we signed up to twitter and didn't follow anyone, that ANY social network would appear as a ghost town...

Idiots and the internet, sometimes I give up...

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Anonymous Coward

Re: what idiot should buy Twitter?

Forgot to cite:

http://uk.ign.com/articles/2013/05/02/report-google-bigger-than-twitter-with-359-million-active-users

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Anonymous Coward

Twitter is "How your fave celebs talk to you"

it's how you become "part of their world" (and can even try talking to them)

sadly, that's why it's worth so much.

PS i say "you" but I don't mean "you, the techie reader" - please, no replies of how "YOU" don't do this (and by extension the rest of the world shouldn't) - I mean "your average person who can operate a computer or phone")

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10 billion?

For a bunch of 'celebs' uploading inane drivel and stupid photos with cleverly placed product placements and a bunch of rubbish from Belibers and One Directioners...

The worlds gone mad

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@ Larry Crapbeans

"The worlds gone mad"

Sadly, no. It's always been like this but now, thanks to social media, it's more noticeable.

Not a pretty sight, though....

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Aaaaannnddd.......

Let The ShortSelling Commence!

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