Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Twitter announced yesterday it has filed a confidential S-1 as a precursor to a potential IPO. Being one of the ‘name’ franchises of the current internet, this should be one of those huge deals when the day comes. Some thoughts from BusinessInsider:
- The early Twitter IPO “price talk” is $20 billion. This would be 17-times Twitter’s projected 2014 revenue of $1.2 billion.
- We don’t have precise information yet on Twitter’s financials over the past few years, but the company’s growth rate is said to be about 100% per year. So the projection of $1.2 billion of revenue in 2014 would be up from, say, $600 million this year. (We’ll know more when we see the filings).
- A multiple of 17-times 2014 revenue, meanwhile, compares to 2013 revenue multiples of 15-times for Facebook and 19-times for LinkedIn. So this price would be in the ballpark of where similar companies are trading.
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