How Twitter's IPO Compares to Facebook: No Profits

How Twitter's IPO Compares to Facebook: No Profits

Twitter is seeking one-fifth the money Facebook hoped for

Twitter publicly filed for its initial public offering on Thursday, revealing financial information that had previously been kept a secret. Its revenue nearly tripled last year, and may pass $500 million in 2013. It is not yet profitable, and it will lose more money this year than last.

As investors scour over these numbers, permit us to make a reductive but irresistible comparison: with Facebook. Wall Street and investors have been waiting for Twitter to go public ever since Facebook did last May.

Also read: Twitter Files for $1B IPO

They are the two biggest names in social media aside from Tumblr, which gave up its dreams of being a public company by selling to one, Yahoo.

Facebook's IPO was mess, and the company's share price plummeted in subsequent months. Yet it has now rebounded, and its share price is 10 points higher than it was when it hit the open market.

Also read: Facebook Plunges Below IPO Price

We've compared Twitter and Facebook at the time of their IPO, using the numbers from their most recent fiscal year (and not the first six months of 2013). Take a look:

Maximum Amount Sought
Facebook $5 billion
Twitter $1 billion

Monthly Average Users
Facebook 845 million users
Twitter 215 million users

Revenue
Facebook $3.7 billion (2011)
Twitter $316.9 million (2012)

Costs
Facebook $860 million (2011)
Twitter $128.13 million (2012)

Earnings per share
Facebook $0.52 (2011)
Twitter -$0.68 (2012)

Revenue/user
Facebook $4.3
Twitter $1.47

  • David

    This would be a whole lot more useful if they included valuation of the company based on IPO pricing, and if they explained what the heck “Costs” means.

    • NateK

      Did you read the S-1?

      • David

        No, and I bet most people reading this article did not either. My comment applies to the article lacking… I'm sure you understand.

        • NateK

          Re: your original comment

          Depending upon the final pricing of the shares (and, hopefully, it will be priced better than FB was) the estimates of market value are between $10 and $15 billion.

          Re: your response to my comment

          Yes, I do and did not mean to be disrespectful or offensive. Would suggest, however, if you are considering investing that you read the S-1 carefully before making any decisions. Articles such as this one are somewhat interesting but certainly not anything on which to base an investment decision; that being said you may not be considering putting any money into Twitter and I should have realized that and not spouted off.

  • NateK

    Am sure this will be oversubscribed with lots of folks expecting it to perform like FB has since its rebound but

    not sure if the FB rebound is for real yet…

    and even if it is there are a lot of warning signs in the Twitter filing, things that go beyond a simple not-apples-to-oranges comparison of FB to Twitter…

    could be a stellar opportunity…

    could be a big mistake…

    and why the rush to the IPO and the somewhat sloppy filing?