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Twitter reports $645m loss for 2013

bbc.co.uk

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Re: Twitter reports $645m loss for 2013

#3

18% drop in after hours trading... ouch https://www.google.co.uk/finance?q=NYSE%3ATWTR&ei=68TyUrjPF4... Anyone who knows more about Twitter, how exactly can they make such a big loss? What exactly are they doing?

They're a big company with lots of employees and infrastructure and not a whole lot of revenue stream. The question isn't so much how can they make a big loss, it's how could anybody have expected different.

Re: Twitter reports $645m loss for 2013

#4

18% drop in after hours trading... ouch https://www.google.co.uk/finance?q=NYSE%3ATWTR&ei=68TyUrjPF4... Anyone who knows more about Twitter, how exactly can they make such a big loss? What exactly are they doing?

> Net loss - GAAP net loss was $511 million for the fourth quarter of 2013 compared to a net loss of $9 million in the same period last year. The company's Q4 GAAP net loss included $521 million of stock-based compensation expense, of which $406 million was for restricted stock units previously granted to employees, for which no expense had been recognized, until the effective date of our initial public offering in accordance with GAAP.

https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=...

Re: Twitter reports $645m loss for 2013

#5

18% drop in after hours trading... ouch https://www.google.co.uk/finance?q=NYSE%3ATWTR&ei=68TyUrjPF4... Anyone who knows more about Twitter, how exactly can they make such a big loss? What exactly are they doing?

Tons of employees + tons of machines + tons of bandwidth - very little advertising revenue = big loss

Have you purchased anything or viewed many ads on Twitter?

Re: Twitter reports $645m loss for 2013

#8
post #4

18% drop in after hours trading... ouch https://www.google.co.uk/finance?q=NYSE%3ATWTR&ei=68TyUrjPF4... Anyone who knows more about Twitter, how exactly can they make such a big loss? What exactly are they doing?

> Net loss - GAAP net loss was $511 million for the fourth quarter of 2013 compared to a net loss of $9 million in the same period last year. The company's Q4 GAAP net loss included $521 million of stock-based compensation expense, of which $406 million was for restricted stock units previously granted to employees, for which no expense had been recognized, until the effective date of our initial public offering in a…

So everyone should have known?

Re: Twitter reports $645m loss for 2013

#9
post #3

18% drop in after hours trading... ouch https://www.google.co.uk/finance?q=NYSE%3ATWTR&ei=68TyUrjPF4... Anyone who knows more about Twitter, how exactly can they make such a big loss? What exactly are they doing?

They're a big company with lots of employees and infrastructure and not a whole lot of revenue stream. The question isn't so much how can they make a big loss, it's how could anybody have expected different.

Per the article, everyone expected a big loss. The stock price dropped because their user growth is slowing.
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