The company pegs its revenue this year at $500 million, though it’s reportedly losing money. “Through six months of this year revenue is $253.6 million, up from $122.4 million a year ago, reports Business Insider’s Jay Yarow. “Over the same period its net loss is $69 million, which compares to a loss of $49 million last year. It currently has $164.5 million in cash on hand, and it is cash flow negative. It burned $38 million in the last six months. ”
PunchTab founder and CEO Ranjith Kumaran said Twitter’s IPO filing is big news for brands.
“Twitter has become a communication lynchpin in the evolution of customer engagement,” said Kumaran. “It’s a mainstay in how people interact with each other, brands, business, governments — the world. We’ve seen that when brands engage with customers through social, it creates deeper relationships. For example, across the entire PunchTab networks, non-incentivized users Tweet less than 1% of the time, while loyalty members tweet 39%. In a recent PunchTab study, moms who indicated they would follow a brand on Twitter, were also the most likely to purchase more often (98% compared to 81% overall).”
“Twitter attracts power users, who want to engage brands on social. A huge infusion of cash means Twitter will just get better,” he continued. “You’re bound to see both instream offers and ads from brands become even more relevant, interactive and engaging. There’s so much value there.
“Based on our research users who are on Twitter are more active across ALL social channels including Facebook. In fact, Twitter users are Facebook’s power users (see infographic below). For brands, Twitter is a huge technological advancement that is helping them solve age old problems — reaching customers; increasing engagement and awareness; and developing loyalty.”
(Click repeatedly on the infographic to view the full-side version.)