twitter's growth is good but making flawed acquisitions

Accuracy score :
97%

Twitter Inc  TWTR

Summary (from latest annual report and quarterly report 2016)

  • Total equity: 4.55 billion USD
  • Market Cap is 11.9 billion USD ( last price of the stock is 16.88 USD)
  • Twitter Inc is a platform for public self-expression and conversation in real time
  • Equity of total company increased from 3.62 billion USD in 2014 to 4.55 billion in 2016
  • Company has 948 million USD in cash on account (from latest quarterly report)
  • Total equity – cash on account = 4.55 billion USD – 948 million USD = 3.6 billion USD
  • In 2016 company has 1.49 billion USD long-term debt, short – term debt was zero(In 2014 total debt was 1.37 billion USD)
  • In 2016 quarterly report - total equity increased to 4.55 billion  USD from 3.62 billion USD in 2014, total debt is 1.49 billion USD in 2016)
  • Company's revenue increased in 2015 to 2.21 billion USD from 1.4 billion in 2014
  • Net loss in 2015 was 521 million USD, Net loss in 2014 was 578 million USD

Twitter Inc standalone subsidiaries

Twitter Inc is a platform for public self-expression and conversation in real time. It provides a way for people to stay informed about their interests, discover what is happening in their world and interact directly. Twitter has more than 500 million users, out of which more than 320 million are active.

In 2015 total revenue was $2.21 billion, an increase of 58% compared to 2014 (TWTR will have increase in revenues around 10-20% in 2016)

  • Advertising revenue totaled $1.99 billion, an increase of 59% compared to 2014
  • Excluding the impact of year-over-year changes in foreign exchange rates, advertising revenue would have increased 65%
  • Advertising revenue generated from the sale of their advertising services on Twitter in 2015 was $1.80 billion as compared to $1.24 billion in 2014. Advertising revenue generated from the sale of their advertising services off Twitter on third party publishers’ websites, applications and other offerings in 2015 was $194.2 million as compared to $11.4 million in 2014
  • Mobile advertising revenue was over 85% of total advertising revenue
  • Data licensing and other revenue totaled $224.0 million, an increase of 52% compared to 2014
  • U.S. revenue totaled $1.44 billion, an increase of 53% compared to 2014
  • International revenue totaled $774.8 million, an increase of 69% compared to 2014

 

Monthly Active Users (MAUs) - Twitter users who logged in or were otherwise authenticated and accessed Twitter through their website, mobile website, desktop or mobile applications, SMS or registered third-party applications or websites in the 30-day period ending on the date of measurement. . In the three months ended December 31, 2015, Twitter had 320 million average MAUs, which represents an increase of 9% from the three months ended December 31, 2014.

 

TWTR standalone subsidiaries and acquisitions :

  • In 2011 Twitter completed the acquisition of TweetDeck for 20 million usd
  • The other acquisitions from 2011 include Julpan, Whisper Systems, BackType, Bagcheck, and AdGrok. The total purchase price for these acquisitions was 18.5 million usd in mostly stock, but a small amount of cash
  • In 2012 Twitter completed the acquisition of Vine for 30 million usd
  • In 2012 Twitter also spent 22.2 million usd on 9 acquisitions , which include Dasient ($19.1 million), Summify, Cabana, RestEngine,Nclud, Posterous, Hotspots.io, Clutch.ioand one other unnamed acquisition
  • In 2013 Twitter completed the acquisition of Crashlytics for 40 million usd
  • In 2013 Twitter completed the acquisition of Bluefin Labs for 80 million usd
  • In 2013 Twitter completed the acquisition of MoPub for 350 million usd
  • In 2013 Twitter acguired (Trendrr, Marakana, Spindle, Lucky Sort, Ubalo ) for 15 million USD
  • In 2014 Twitter completed the acquisition of Gnip for 134 million usd
  • In 2014 Twitter completed the acquisition of Namo Media for 50 million usd
  • In 2014 Twitter completed the acquisition ofTapCommerce for 100 million usd
  • In 2014 Twitter completed the acquisition ofPeriscope for 100 million usd
  • In 2014 Twitter acguired (Mitro, CardSpring, SnappyTV, Cover Lockscreen, Adrenaline Mobility, SecondSync, Mesagraph) for 180 million USD
  • In May 2015, Twitter completed its acquisition of TellApart for 479.1 million USD (paid in shares of the Company’s common stock having a total fair value of $456.5 million and cash of $22.6 million)
  • In 2015 Twitter acguired Niche and Zipdial for 80 million USD
  • In 2015 Twitter acquired four other companies (ZeroPush, Fastlane, Whetlab, tenXer), which were accounted for as business combinations for 118 million USD
  • In 2016 Twitter acguired Peer for undisclosed amount ( 10 - 40 million USD)
  • In 2016 Twitter acguired Magic Pony Technology for 150 million USD

 

Total = 1.96 billion USD

 

Opinion about the company

Fundamentally it is a not good company (Total debt is big (1.49 billion usd), company operates with net loss,  ROE is negative: around - 9 %).