AHEAD of a €750m stock market flotation, Twitter has released new details about how it makes money, how its users interact with advertising services and how much of the company its main shareholders hold.
The social networking giant, which recently announced plans to double its Dublin workforce from 100 to 200, revealed that it had racked up €324m in accumulated losses so far, with a €47m loss on €190m revenue in the first six months of this year. While revenues are growing fast, losses are too. The company revealed that it makes 59 cents in advertising payback for every 1,000 'timeline views' and that US users are far more lucrative (€1.60 per 1,000 views) than European and other non-US users (22 cents per 1,000 views).
This results in Twitter making 75pc of its advertising revenue in the US, despite it only representing 30pc of its user base.
The company's filing document reveals that two-thirds of its ad revenue comes from smartphone and tablet users, with just a third coming from PC users.
It also revealed a slowdown in advertising growth, with ad revenue down 13pc from the fourth quarter of 2012 to the first quarter of 2013.
The company said that this indicates the advent of seasonality as an advertising business factor for the firm.
Overall, Twitter has 218m active monthly users, 70pc of whom reside outside the US. However, non-US tweeters use the service less than US account holders.
The filing shows that one founder, Ev Williams, holds more equity in the company than any other individual shareholder.
Mr Williams is listed as the owner of 12pc of the company's shares, ahead of co-founder Jack Dorsey, who owns 4.9pc. Based on an expected IPO price of around $30 (€22.35), this would leave Mr Williams with an equity holding worth around €1.2bn and Mr Dorsey with shares worth €500m.
Two other co-founders, Biz Stone and Noah Glass, are listed as holding no equity in the company.
The other principal individual shareholders listed in Twitter's filing documents are investor Peter Fenton, whose Benchmark investment holding of 6.7pc of Twitter shares gives him a stake worth €690m, and Twitter chief executive Dick Costolo, whose 1.6pc stake in the firm translates into €165m.
Mr Costolo is also the social network's highest paid executive, earning €8.5m last year.
The next best paid executive is Christopher Fry, with €7.6m last year, while head of global revenue Adam Bain was paid €4.9m last year.
Twitter acknowledged Ireland as a tax base for the company.
"The material jurisdictions in which the company is subject to potential examination by taxing authorities include the United States, California and Ireland," said the filing document.
"The company believes that adequate amounts have been reserved in these jurisdictions. The company's 2007 to 2012 tax years remain subject to examination by the United States and California, and its 2011 to 2012 tax years remain subject to examination in Ireland."