Will Twitter Draw the Curtain on Its Financials This Week?

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Twitter continues to march toward its highly anticipated initial public offering. Sources tell Quartz that the social media platform could make its S-1 filing public as early as this week, a move that could prime the investment pump with critical data about the company’s business model and financial condition.

Twitter announced via Tweet that it had confidentially filed the S-1 document on September 12, but insiders have revealed that the company actually submitted the paperwork to the Securities and Exchange Commission in July. Twitter was able to submit its filing privately thanks to the Jump Start Our Business Startups Act (or, JOBS Act), which was passed in 2012 in an attempt to encourage small businesses to seek public funding through the markets.

Although somewhat controversial, the JOBS act has allowed companies like Twitter to test the waters without necessarily disclosing any sensitive information to the public. A confidential filing allows Twitter to court large investors and grapple with the issues of demand for equity and valuation in private before pulling back the curtain, which could help reduce volatility when shares ultimately go public.

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