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Twitter discloses $134m loss as it shares details about IPO

Twitter files for IPO, chirps announcement in a tweet
Twittering away

Twitter posted a filing on Thursday with the SEC, confirming that it wants to sell 70 million shares in its initial public offering. The price of the share is expected to be pegged anywhere between $17 and $20 which means that the company could raise up to $1.4bn.

That amounts to 13% of Twitter and slaps a potential $11bn price tag on the popular micro blogging website. Analysts have noted that Twitter's valuation was lower than expected, possibly because the company wants to avoid the fate of Facebook.

When the latter went for a higher than expected $38 per share, the stock rose by nearly 20% before dropping significantly, although the share price is now well above the initial value, very near to its all time high of $54.83.

Active users

The SEC filing contains a number of key statistics like the fact that Twitter has 232 million monthly active users and more than 100 million daily active users that generate more than 500 million Tweets per day.

Three quarters of its monthly active users access Twitter from a mobile device with more than two thirds of the company's advertising revenue coming from mobiles and tablets.

It also reveals that Tweets have appeared on more than one million third-party websites and that there were a staggering 48 billion online impressions of Tweets from its properties.

While impressive, these data can't hide the fact that Twitter is still in the red, losing $69m in the first half of 2013, on revenues of $254m and relying too much on advertising on its website (currently 85%). Crucially, net loss nearly doubled in the first nine months of 2013 compared to the same period last year.

Desire Athow

Managing Editor, TechRadar Pro

Désiré has been musing and writing about technology in a career spanning four decades. Following an eight-year stint at where he discovered the joys of global techfests, Désiré now heads up TechRadar Pro. He has an affinity for anything hardware and staunchly refuses to stop writing reviews of obscure products or cover niche B2B software-as-a-service providers.