Twitter publicly released its initial public offering
registration statement late on Thursday and it was filled with tons of
data about the fast-growing social network’s finances.
Some were expecting the company would be showing at least some profits, but Twitter reported a net loss of $69 million for the first half of 2013.
Looking through Twitter’s financial results, one number seems potentially out of whack for a major, public tech company, especially one that could soon have a stock market value of $15 billion to $20 billion. Twitter spent a whopping 44% of its revenue, or almost $112 million, on research and development through the first half of 2013.
Facebook (FB) spent 19% of its revenue on R&D over the same period. Review listing app Yelp (YELP), which has a market cap under $5 billion, spent 15%. LinkedIn (LNKD), valued at $27 billion, used 26%. Bigger companies spend far less even than that. Apple (AAPL) allocated just 2.5% of its revenue to R&D over the nine months ended June 30. (more)
No comments:
Post a Comment