U.S. securities regulators questioned an early version of Twitter’s initial public offering prospectus that claimed the social media company was becoming more profitable when it was actually losing increasing amounts of money.
That and other tidbits were revealed in regulatory filings made by the company on Friday that show the back-and-forth with the U.S. Securities and Exchange Commission as the company approached its IPO on Nov. 7.
Twitter first submitted its IPO prospectus to the SEC on July 12, exactly two months before it publically acknowledged the filing and its IPO plans. The document was provided confidentially for review, and the company’s claim about profitability was quickly questioned by the SEC.
”We note your statement that you ‘have experienced significant improvements in [your] operating results in recent periods.’ Please revise this disclosure to address the fact that your net loss in the first quarter of 2013 was larger than the same period in 2012 and the two quarters immediately preceding it,” the SEC instructed Twitter on Aug. 8.