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what's even more outrageous about this balance sheet is that in 2013, in order to generate 664M revenue, they spent: 1) 266M on content acquisition 2) 600M on
by boomzilla 13y ago
what's even more outrageous about this balance sheet is that in 2013, in order to generate 664M revenue, they spent:
1) 266M on content acquisition
2) 600M on R & D
3) 312M on on sales and marketing
4) 123M on general administration
If this is not a Ponzi scheme, I don't know what is.
Oh, by the way, please down vote me for citing these numbers.
- deleted 13y ago[deleted]
- boomzilla 13y agoAlright, let's try again (from the same balance sheet): Year 2012: revenue 316M, cost & expenses: 394M Year 2013: revenue 664M, cost & expenses: 1300M year over year, revenue increases 2 folds, cost increases more than 3 times. Does that answer your question? You could also break it down by quarters, but the same trend is still there.
- steffan 13y agoYour numbers are fine, but I wish I could downvote you for the passive-aggressive “...please down vote me for citing these numbers.”
- minimax 13y agoIt's not a Ponzi scheme. A Ponzi scheme requires some element of fraud, yet here you have Twitter's earnings statement and balance sheet right out in the open. There are reasonable people who think investing in a company presently running at a loss but with a potential for generating huge profits is a reasonable thing to do. Just poking at your numbers a bit, of that 600M in R&D, 379M was from stock based compensation that hit them in the 4th quarter because of the IPO (they had to expense the RSUs at that point). Don't you think it's a little strange that $400M of the $600M in R&D costs were accrued in the 4th quarter? I'm not advocating buying Twitter stock. Just trying to counter some of the overzealous cynicism in this thread.