Topeka Capital Markets analyst Victor Anthony rates Twitter Inc (NYSE:TWTR) as a Buy as he looks at some key metrics from the social media company.
Twitter’s share-count
Twitter Inc (NYSE:TWTR) listed 588.378mm common shares as of the end of Feb. 28, 2014, up from 569.921mm as of December 31, 2013. There were 42.2mm options outstanding at 12/31/2013 with a weighted exercise share price of $1.89 and 79.876mm RSUs.
Locks-ups
“Beginning on May 6, 2014, the remainder of the shares of our common stock will be eligible for sale in the public market.” Hence, the last lock-up expires on May 5, 2014. A total of 479.6mm shares, or 81% of the current common shares outstanding will be available for sale.
Capital Expenditures
“We anticipate making capital expenditures in 2014 of approximately $330 million to $390 million, a portion of which we will finance through capital leases, as we continue to expand our co-located data centers and our office facilities.”
Patents
“As of December 31, 2013, we had 956 issued patents and approximately 100 filed patent applications in the United States and foreign countries relating to message distribution, graphical user interfaces, security and related technologies. Our issued United States patents are expected to expire between 2016 and 2031.”
NOLs
“As of December 31, 2013, we had $429.3 million of federal and $268.3 million of state net operating loss carry forwards available to reduce future taxable income.”
Data License Partners
“In the year ended December 31, 2013, our top five data partners accounted for approximately 72% of our data licensing revenue, and approximately 7% of total revenue in the period. We expect data licensing revenue to decrease as a percentage of our total revenue over time.
Employees
“As of December 31, 2013, we had 2,712 full-time employees”. Twitter Inc (NYSE:TWTR) had 2,300 employees at end of 3Q13.
Media Distribution of Tweets
“Tweets have appeared on over eight million third-party websites, and in the fourth quarter of 2013 there were approximately 67 billion online impressions of Tweets off of our properties.” In 3Q – “Tweets have appeared on over one million third-party websites, and in the third quarter of 2013 there were approximately 48 billion online impressions of Tweets off of our properties.”
