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Comment by mikeyouse | Hacker News Reader

Twitter's a $25B company with $4B cash in the bank and is at revenue run rate of more than $1B/year. There are some existential questions about whether or not they could be doing more with their reach and influence, but it seems decently managed from my perspective.

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Twitter has a $25B market capitalization which is not the same as saying that the company is worth $25B. $4B ($3B, actually) cash in the bank are not so cool if they're loaned and you have to pay them back eventually, with interest. And finally, having revenue does not imply being profitable.

> Twitter has a $25B market capitalization which is not the same as saying that the company is worth $25B.

Tautologically, that's exactly what it means.

> $4B ($3B, actually) cash in the bank are not so cool if they're loaned and you have to pay them back eventually, with interest

$3.6B with $350M in receivables actually. Their debt is convertible debt (which won't impact their cash) at 0.25% and 1%.

> And finally, having revenue does not imply being profitable.

It certainly doesn't but Twitter has positive Operating Cash Flows and the market thinks they'll return $25B in PV to equity, so I think I'll side with the market on this one.

Ok you win, haha. Still, I believe that Twitter will not make it. We'll see what happens.

Where did all that cash come from?

From their SCFs, they raised $2.1B in last year's IPO, $300M in follow-on equity sales and $1.7B in convertible debt. They had great timing on the debt though, it's price basis was at a stock price of $75 (It closed today at $41).[1]

http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter...

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