Posted in: Social Networks

Twitter posts hefty loss for 2013, stock takes a dive

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2013 saw Twitter’s IPO but it has not been a good year for the concise social network. The company filed its 2013 financial report with the SEC and posted a whopping $511 million net loss in Q4.

Revenue for the year doubled compared to 2012, however the first three quarters weren’t too kind to Twitter either and the net loss for the full year is $645 million.

Of the loss in Q4, $521 million is from stock-based compensations. $406 million of that is from restricted stock granted to employees (a common way for startups to hire employees). This year, the stock-based compensation is projected to cost $600-650 million.

     Quarter Ended     Year Ended  
     Dec 31, 2013     Dec 31, 2012     Dec 31, 2013     Dec 31, 2012  

GAAP Results

         

Revenue

    $ 242,675      $ 112,247      $ 664,890      $ 316,933   

Net loss

    $ (511,471 )    $ (8,705 )    $ (645,323 )    $ (79,399 ) 

Diluted net loss per share

    $ (1.41 )    $ (0.07 )    $ (3.41 )    $ (0.68 ) 

Non-GAAP Results

         

Adjusted EBITDA

    $ 44,745      $ 17,571      $ 75,430      $ 21,164   

Non-GAAP net income (loss)

    $ 9,774      $ (271 )    $ (34,330 )    $ (35,191 ) 

Non-GAAP diluted net income (loss) per share

    $ 0.02      $ (0.00 )    $ (0.18 )    $ (0.30 ) 

Investors are not impressed and at the time of this writing Twitter stock is down over 16% in pre-market trading.

The other numbers from the report look mildly encouraging – the advertising revenue for Q4 was $220 million, up 121% year over year and 75% of that revenue came from the coveted mobile field. The Average Monthly Active Users were 241 million, up 31% year on year, 184 million were on mobile.

For the full 2014, Twitter expects revenue in the range $1.15-1.2 billion, but on top of the stock compensations there will be somewhere $330-390 million in capital expenses.

Source | Via

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