updated 09:58 pm EDT, Tue July 29, 2014
Revenues up more than $170 million compared to last year, posts $145 million loss
Twitter released its quarterly results today, showing a strong surge in business during the second quarter of its 2014 fiscal year. The company posted revenues of $312 million, compared to only $139 million during the year-ago quarter. The increase represents a 129 percent increase year-over-year. The social media company also saw an increase in users compared to the results from the previous year.
The three-month picture for the quarter that ended June 30 shows a large gain over the previous year's figures, even beating projections that analysts stated would only reach $283 million, according to the Wall Street Journal. Quarter-to-quarter, revenue increased from $250 million, representing an increase of roughly 25 percent.
Advertising made up the largest chunk of the increased revenue, bringing in $277 million for the quarter. Year-over-year, this was an increase of 129 percent. From the previous quarter, which reported advertising revenue as $226 million, revenue increased approximately 22.5 percent.
"Our strong financial and operating results for the second quarter show the continued momentum of our business," said CEO Dick Costolo. "We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter's appeal to an even broader audience."
Specific numbers reflecting a reason for the revenue increase isn't made clear by the financial report, but the social media sharing that occurred during the World Cup could have a hand in it. The World Cup was the most talked-about sports event in social media history, with large numbers of comments funneling through the micro-blogging service.
New tools and investment in advertising could contribute to the growth, as things like Twitter cards allowing application downloads from within a timeline were added during the quarter. Advertising agreements with partners like Omnicom Media, Amazon's item purchases with a hashtag promotion, and new profiles and features could be drawing more of an audience.
User counts increased for the service as well, seeing an average monthly user count of 271 million, or a 24 percent increase year-over-year. By comparison, the first quarter of 2014 saw an average user count of 255 million. Mobile users totaled 211 million, for an increase of 29 percent from the first quarter. Mobile users are also said to be 78 percent of all monthly active users.
The user count becomes important as the number of timeline views has an effect on the revenue stream per view. Timeline views hit 173 billion, an increase from 157 billion the previous quarter, which made the revenue per thousand timeline views $1.60. This was a 100-percent increase year-over-year. The first quarter only saw $1.44 per thousand views.
Not all is well with the quarterly results, however, as Twitter posted a $145 million loss for the quarter. By comparison, the second quarter of 2013 saw a loss of only $42 million. Second quarter net loss increased about 242 percent over the previous year. The previous quarter posted a loss of $132 million, a year-over-year an increase of 389 percent from a $27 million net loss.
Twitter states that the revenues for the third quarter 2014 should be between $330 and $340 million. The company also revised its outlook for the year, raising overall revenues to be somewhere between $1.31 and $1.33 billion.