4 ms·
part of these numbers is, I think, a gaap artifact, particularly related to stock based compensation look at their 2013 annual report, page 41 [1]. $841m cash
by x0x0 12y ago
part of these numbers is, I think, a gaap artifact, particularly related to stock based compensation
look at their 2013 annual report, page 41 [1]. $841m cash, $1.391B short term investments, $2.35B working capital. They appear, to my reading, to be cash flow positive. Cash flow positive businesses tend not to go out of business. Again, from their 3Q report:
As of September 30, 2014, cash, cash equivalents and marketable securities
were approximately $3.6 billion, compared to $2.1 billion as of June 30, 2014 [2]
That is not a company in danger of going out of business soon baring an advertising crash.
[1] http://files.shareholder.com/downloads/AMDA-2F526X/3578573965x0x742484/A418947A-E065-4822-8BD4-00FA8EB4E795/Twitter_2013_Annual_Report_-_FINAL.pdf http://files.shareholder.com/downloads/AMDA-2F526X/357857396...
[2] https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=878170 https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=...
- _almosnow 12y agoassets != profit They had 1.2B for funding, then they IPO'ed, then they even made some weird stuff like [1] (which looked like a really desperate 'running out of cash' decision to me), sum all of that stuff up and you can easily explain those 3.6 billion plus all the other money that they had burn. Sure they won't go out of business soon, but they will when all that money's gone. Twitter will be the flagship example of the second dot-com boom. And they deserve it, so many wrong business decisions during these years that you start giving Thiel's pot-smoking theory a good chance. [1] http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter-takes-advantage-of-soaring-stock-with-1-3b-convertible-debt-offering/ http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter...