Thursday, July 31, 2014

Twitter 2nd Quarter 2014 Results: net loss of USD 145 million!!!

Accumulated deficit of over USD 1.27 Billion.
    Q2 revenue of USD 312 million, up 124% year-over-year
    Q2 net loss of USD 145 million and non-GAAP net income of USD 15 million
    Q2 GAAP EPS of (USD0.24) and non-GAAP EPS of USD0.02
    Q2 adjusted EBITDA of USD54 million, representing an adjusted EBITDA margin of 17%
Astonished to see how they show you like a success when it is a failure!
I see a tech space that is out of control.
There is a large dotcom bubble fueled by venture investment funds, investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose.
Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then, the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating balloons and they need to find a buyer before they explode. If they can not find a private buyer for the entire company, the investors had the strategy of going public, to start trading its shares on the New York Stock Exchange, they turn those pieces of paper (shares) in real money, they get thousands of buyers purchasing lower small parts (shares).

Please see:
Twitter 1st Quarter 2014 Results: net loss of USD 132 million!!!
Silicon Valley needs to step outside Silicon Valley, article at Vator
Tinder, Chatroulette, Twitter and PlentyOfFish (POF) and tech space that is out of control

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