What We’re Learning About Twitter From IPO Filing

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Oct. 4 (Bloomberg) -- Bloomberg senior West Coast correspondent Jon Erlichman breaks down the IPO filing from Twitter to discover the company’s finances and how they stack up against other social media companies. He speaks on Bloomberg Television’s “Bloomberg West.”

Came out late last night.

The revenue story tells us that the business is growing rapidly, $250 million generated in the first half of the year from a business that generated less than $30 million back in 2010. people will find a few key nuggets to look at.

Many people have already been talking about how much revenue is being generated for every user.

If your revenue is climbing at a faster rate, your user base, your -- that number will be climbing.

Over the last few months, to march of last year, there has been a steady in grace from each twitter user being worth about $.40. accusers are worth more based on the analysis.

-- facebook users are worth more a stone the analysis.

Even more so for linkedin.

Linkedin is based on people using linkedin on pc's as opposed to mobile devices.

We understand that twitter is a growing business.

As far as the kind of revenue it is generating for the total user base, there is a big difference between a company like twitter and facebook.

I was surprised that there was not a lot of discussion of advertisers and returning to the site or how much they are using it.

The revenue per user is increasing but i did not realize that return users are using more advertising on the site.

Investors who will be interested in the business behind twitter might look at something such as revenue per user.

A lot of advertisers don't necessarily do that.

Direct response marketers want to know a metric like that.

Big brands that are putting dollars to work on more interested in the user's overall.

It's a more subjective experience.

They take bundles of money and they say here it is, go put it to work.

There are a lot of intangibles that go into the kind of return on investment they are looking for.

Many of them are just looking to be cool.

Twitter has been able to take advantage of that in its early days.

Will we at some point along the road to the ipo here from some advertisers on this issue and how will that affect the price of the deal?

I'm looking to be cool too but failing miserably unlike you.

Emarketer have crunched the

This text has been automatically generated. It may not be 100% accurate.


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