Gadgetory

hello and welcome to inside scoop I'm Sumi das joining me is daniel Terdiman senior writer for Cena Daniel thanks for being with us my pleasure okay so it is now official there is going to be an IPO for Twitter we had expected this yes the paperwork has been filed so they have filed what's called an s-1 with the SEC that happened today yes and now we know things that we didn't before what what's going on with the financial health of Twitter well twitter has yet to ever make a profit but their revenues are now in the range you might say about looks like five hundred million dollars for a full for the full year of 2013 extrapolating a little bit but and the revenues are going up pretty you know that's helped it healthy rise in revenue let's talk about mobile because mobile is such an important aspect of a Twitter of this business model how is Twitter set up to really capitalize on mobile and take advantage of them well twitter if to remember what started as a service that was tied to carriers to text messaging systems which routes were really yeah that's why I Twitter maximum length of 140 characters that was tied to you know what you could do in a text message so from the beginning it's been built as a service for mobile and that's played out or that's represented in the fact that they say seventy-five percent of their active users you know do it on mobile sixty-five percent of their advertising revenue comes from mobile and if you compare that to what Facebook did when you know after their IPO they really struggled to to figure out how to make money from mobile right they've only recently kind of nailed that down and gotten their mobile business in order really this year right yeah and that's why it's a primary reason why facebook's IPO kind of tanked for the first you know six months or so and now that they have figured out mobile why facebook is now sort of back above what they're with their IPO right they've gone above the original price so so really twitter it seems like it's set up in a good position then other comparisons between Twitter and Facebook of course that's the most recent sort of IPO in history they are considered competitors how did how do they compare I mean we know that twitter has far fewer users monthly active users than Facebook does correct right so so Facebook most recently said they had I think like one point 18 billion monthly users by comparison Twitter's says they're about 218 million so that's 66 and there's even a larger gap in terms of revenue it seems like Facebook is making a ten times as much money and in revenue and they have their already profitable whereas Twitter's has yet to ever make a profit right and and what is twitter trying to accomplish I mean it's it's it's a pretty lofty goal here it's a billion dollars right if you think about it a billion dollars for an IPO doesn't seem like that much anymore I mean like I think Facebook well remember they tried to raise 10 billion in there for a billion right but if the IPO goes the way of facebook which I'm not saying that it will but it's possible right anything's possible so women think that that Twitter with their billion dollars is going to expand pretty significantly in fact there's been rumors in the last day or so that they're looking at a lease on a new space in San Francisco level double them at a size that they have moved into their new headquarters it seems out of here that long yeah it's been about a year so that if that's true then they're looking to double at least double the size of their workforce they'll probably acquire more companies fill in you know some more holes so and then the final question is when is this IPO gonna happen when can everybody actually buy shares we don't know exactly yet but we can imagine it'll happen you know by next month for sure all right ok Daniel I'm sure this is not the last that we'll be hearing everyone Twitter IPO will probably be turning to you again for news thanks so much my pleasure for inside scoop I'm Sumi das thanks for watching