Financial analysis company PrivCo has released its 2013 list of predictions for the upcoming business year. The predictions feature dying social media ventures and new mergers, but at the top of the list is Twitter’s long-awaited initial public offering.
PrivCo believes the social network company will finally file for its IPO in the latter days of 2013 and be ready to go public at the beginning of 2014. The prediction cites recent Twitter activity pointing toward an initial public offering plan that will gain momentum through 2013.
It is certainly true that many of Twitter’s latest innovations have focused on increasing cash flow. Promoted tweets allow businesses and marketers to pay for greater exposure throughout the Twitterverse. Targeted tweets are similar, but allow businesses to pay more money for greater accuracy when it comes to marketing efforts. Both have seen recent success among tweeting companies.
Investors love to see signs of monetization in their social media projects, and these latest strategies seem built to show concrete sources of revenue for the company. If PrivCo is correct, 2013 will act as a proving ground, showing the public that Twitter has profit power as well as global brand reach. The estimates show Twitter will generate around $245 million in revenue in 2012 once the final numbers are in. Activities in 2013 show even more promise, netting over $500 million.
Just when investors are convinced that Twitter has a successful long-term revenue strategy, the company will create headlines by filing for an initial public offering in the final quarter of 2013 and then, after unveiling its final revenue figures for the year, will go public with a bang around February 2014.
“Twitter will learn from Facebook’s flawed playbook and do the opposite. Twitter will conservatively price its IPO at 30x revenue, or $15 Billion,” said PrivCo CEO Sam Hamadeh in the prediction release. “Unlike Facebook, which waited too long to IPO (until its growth rate decelerated), Twitter will IPO at just the right inflection point: while revenue grows in triple digits and with its final pre-IPO quarter reported at its seasonally strongest 4th quarter.”
The study also cites other promising moves by Twitter. In 2012 alone, the company entered 50 new countries and reached support for 33 different languages. As emerging markets turn to social media to help advance their own industries, international marketing could become a major source of profit for the company. It could also prove that social media has finally found its place in the IPO world after a nearly disastrous public outing by Facebook.
[cf]tracking[/cf]
No Comment