Twitter revenue increases ahead of initial public offering
Revenue more than doubled in third quarter even as losses widened
Twitter continued its torrid growth pace ahead of an initial public offering, as the microblogging service said revenue more than doubled in the third quarter even as losses widened.
The San Francisco-based firm said in a filing overnight on Tuesday that its revenue was $168.6 million (€124.5 million) in the period, up from $82.3 million a year ago. Its net loss expanded to $64.6 million from $21.6 million. Twitter also said it would list its shares on the New York Stock Exchange.
The filing gives investors another report card on the health of Twitter’s business as it readies for the most-anticipated US technology offering since Facebook last year.
While Twitter pervades popular culture, it is still in the early stages of building its advertising business and faces more competition in social media.
“Near-term you’re going to see this company grow very quickly,” Robert Peck, an analyst at SunTrust Robinson Humphrey who has a buy rating on Twitter stock, said in an interview before the filing was released.
“Before they can be profitable, they still have a long way to invest in their infrastructure and the future of the platform.”
The company is seeking to raise more than $1 billion in its IPO, sources have said.