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btbuildem

$14/share @ 11.5M shares

Title of Each Class of Securities to be Registered: Class A common stock, $0.001 par value per share

Amount to be Registered: 11,500,000

Proposed Maximum Aggregate Offering Price Per Share: $14.00

Proposed Maximum Aggregate Offering Price: $161,000,000

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Twilio finished 2015 with a $35.5 million loss on revenue of $167 million. For the year, it listed research and development costs of $42.6 million and a combined $85.3 million in operating expenses.

I'm not sure if that justifies $161M market cap.

161M isn't the market cap. It's the value of the shares they plan to sell at IPO.

With 82,200,793 shares outstanding after IPO if the price holds at $14 that's a market cap of 1.15B.

About 7x revenues. That's a pretty high multiple, but hopefully they can pull it off.

Recent IPOs weren't nearly as aggressive, but of course different industries. Will be interesting to see how investors react to lack of long term customer commitments and instead relying on tech integration stickiness to drive repeat spend.

investors primarily care about future profits. trailing twelve month revenues are just one of many potential indicators of future profit. a 7x multiple of revenue _is_ very high for a slow or no-growth company, but for a high growth company, it can be very reasonable.

Not saying it couldn't be, but as of late the overall market seems to be more pessimistic and therefore discounts prospects of future earnings more than usual. That said, I'm no expert.

This is actually fascinating - I like stock forums like Stocktwits a lot, and you often see people who's only argument against growth stage tech companies is that they're not currently profitable. I always assumed that logic has an end at some valuation - in this case, imaginenore doesn't believe a company that isn't profitable yet is worth even 1x revenue! Amazing!

Market cap isn't $161M - they're issuing 11.5M shares, but there will be over 80M outstanding after the IPO. Market cap will be just under $1B.

just over 1B (1.15b) but yup you're spot on

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