Twitter more than doubles its sales, but still can't turn a profit

Twitter reported a net loss of more than $132 million for the first quarter

Twitter's earnings for the past two financial quarters and four fiscal years.
Twitter's earnings for the past two financial quarters and four fiscal years.

Twitter on Tuesday turned in some healthy sales figures for the first quarter, though its net loss grew substantially compared to last year.

Total revenue for the period ended March 31 was roughly US$250 million, Twitter reported, more than double the $114 million recorded for the same period in 2013. Twitter's sales topped analysts' consensus estimate of $241 million, as polled by Thomson Reuters.

"We had a very strong first quarter," said Twitter CEO Dick Costolo in the company's announcement. "Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth."

However, Twitter hasn't managed to turn a profit since it became a public company. The company reported a net loss of more than $132 million for the quarter, nearly quintupling the loss of roughly $27 million reported for the year-ago period.

The company's earnings per share loss was $0.23, a tad worse than a loss of $0.21 reported last year. On a pro forma basis, excluding share-based compensation and other adjustments, Twitter broke even, beating analysts' expectations of a loss of $0.03 per share.

Twitter's stock was down to $38.30 in after hours trading, down considerably from its $42.62 Tuesday close.

Twitter, like Google and Facebook, makes the bulk of its money from advertising -- $226 million for the quarter, up 125 percent. The lion's share of its advertising -- 80 percent in the first quarter -- comes from mobile.

To continue growing its ad revenue, Twitter needs to attract more users and increase the time they spend using the service. As a public company, Twitter is under pressure to make its service more accessible to a mainstream audience.

The company in recent months has tried to address this, partly through cosmetic changes like redesigning user profile pages and making photos more prominent in people's streams.

Twitter is making progress in this area, but not very rapidly. Compared to the same period last year, Twitter grew its monthly active users by 25 percent, to 255 million. But compared to the fourth quarter of 2013, Twitter grew its monthly active users sequentially by less than 6 percent.

On mobile, Twitter now has 198 million monthly active users -- a 31 percent increase, the company said.

Twitter executives will hold a conference call with investors and financial analysts Tuesday afternoon to discuss the results in-depth. More information could be given during the call about the health of particular types of ads, or of Twitter's mobile ad network, MoPub.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Putting the ‘human element’ back in marketing

During the recent CMO Momentum conference, Paul Mitchell shared how marketing leaders can create cultures that deliver

Paul Mitchell

Managing director, The Human Enterprise

The rise and rise of voice search

In 1982, an AT&T employee by the name of Plotzke predicted the rise of voice: “In fact, it has been predicted that, by 1990, well over half the communications dollars spent by businesses will be for products and services that include voice technologies.

Michael Jenkins

Founder and director, Shout agency

Is design thinking the answer for the next generation of marketing?

The speed and pace of change will never be slower than we’re experiencing today. So in this era of unprecedented change, how can brands meet soaring consumer expectations, stay relevant and deliver differentiated and connected experiences?

Merryn Olifent

Senior consultant, G2 Innovation

https://uploads.disquscdn.c... [magic school bus] KID: where are we going today MS. FRIZZLE: the zoo KID: but last week we went to SPACE ...

Germain3161

Sephora Asia details its journey to data-driven decision making

Read more

DP Apparel bietet große Auswahl Audi Rennbekleidung in Deutschland zu den besten Angeboten. Das Geschäft bietet auch qualitativ hochwerti...

DP apparel

Audi Australia gets a new CMO

Read more

this is a really great news

Vincent Mouton

Mobile-first banking startup showcases fresh brand identity

Read more

Prozac is the brand name of fluoxetine, a prescription drug used to treat depression obsessive-compulsive disorder, and panic disorder. B...

jenson smith

CMO's top 8 martech stories for the week - 19 July 2018

Read more

I have been suffering from (HERPES) disease for the last two years and had constant pain, especially in my knees. During the first year, ...

Steven Kizzy

KPMG Australia appoints ex-Publicis leader as head of brand strategy

Read more

Latest Podcast

More podcasts

Sign in