Twitter Disappoints in Q1 Earnings Despite Strong Advertising Growth
Shares of Twitter tumbled toward record lows following yesterday’s publication of Q1 2014 earnings.
On Tuesday, Twitter reported net losses have grown by $100 million in the first three months of 2014, news that quickly overshadowed the fact that Twitter’s operating earnings and revenue beat Wall Street projections.
Revenue for the quarter came in at $250 million.
Specifically, for Q1 of 2014, advertising revenue was $226 million, which is up 125% year-over-year. Data licensing and other revenue totaled $24 million (up 76% year-over-year).
“We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth,” said Dick Costolo, CEO of Twitter. “We also continue to rapidly increase our reach and scale. With the integration of MoPub, we now reach more than 1 billion iOS and Android users each month, making us one of the largest in-app mobile ad exchanges in the world and the only one at scale to offer native in-app advertising.”
