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Their revenue exceeds 1bn per year so...yeah. They are a billion dollar company.
by ryanSrich 11y ago
Their revenue exceeds 1bn per year so...yeah. They are a billion dollar company.
- fitchjo 11y agoI would say normally when you are using monetary value as an adjective for a company, you are describing how much it is worth, not in relation to revenues. Most companies do tend to have Revenue/EV multiples greater than 1.0, so more times than not, that would be correct. However, I would not say that would always be the case.
- ryanSrich 11y agoFair enough. Twitter definitely doesn't produce profits in the billions. Twitter doesn't even produce profits at all. It's a poorly run billion dollar company imo [1,2]. If operated and ran efficiently it has the reach and potential to produce billion dollar profits. I highly doubt we'll ever see a twitter like that though. They're too far entrenched in the culture of frivolous spending and Silicon Valley economics. 1. http://money.cnn.com/2014/03/06/technology/social/twitter-cabins/ http://money.cnn.com/2014/03/06/technology/social/twitter-ca... 2. http://in.reuters.com/article/2015/04/28/us-twitter-results-instant-idINKBN0NJ2GO20150428 http://in.reuters.com/article/2015/04/28/us-twitter-results-...
- MSM 11y agoTWTR right now has a operating margin of -26%. So they spent ~1.3B to get that 1.0B in revenue. If I were to make a bunch of goods for $130/each, and then sell them for $100/each but managed to sell 10M of those goods should I be valued as a billion dollar company?
- swingbridge 11y agoThat's apparently jet.com's business model ;-)