Twitter wows on revenue but user growth drags

The company is adding new users at a slower rate

Twitter nearly doubled its revenue last quarter, handsomely beating forecasts, but it continues to battle slow user growth.

Twitter ended the fourth quarter of 2014 with 288 million monthly active users, up 20 percent from the same quarter a year earlier, it announced Thursday. That was the smallest growth rate Twitter has ever reported.

Still, it managed to increase sales thanks to a strong advertising business. Total revenue for the quarter ended Dec. 31 was US$479 million, up 97 percent from a year earlier. Analysts had expected revenue of $453 million, according to Thomson Reuters.

Twitter's loss for the quarter was $125.4 million, much better than the $511 million it lost a year earlier. On an adjusted basis, which excludes certain expenses, earnings per share was $0.12, double the analyst estimate of $0.06.

Following the release of the results, Twitter's stock was up almost 9 percent in after hours trading, at $44.95.

"We closed out the year with our business advancing at a great pace," Twitter CEO Dick Costolo said in a statement.

For the full year, Twitter's revenue was $1.4 billion, more than double its 2013 revenue of $665 million.

Twitter has increased the sophistication and targeting of its ad products over the years, but it's under pressure to expand its user base more quickly. It's user growth rate has declined each quarter since it went public a little over a year ago.

One way it's tried to do this is by touting the value of tweets viewed on other websites, away from its own services. These "logged out" users could be a valuable source of ad revenue, Costolo has said.

Just this week, Twitter said it will begin displaying tweets from advertisers on outside properties, starting with Flipboard and Yahoo Japan.

It's also trying to make it easier for new users to enjoy its service. This week, for instance, it began testing a feature for new users on its Android app that automatically builds a list of people for them to follow.

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.

Tags social mediainternetbusiness issuestwittersocial networkingfinancial resultsInternet-based applications and services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Brand Post

Bitdefender 2018

Secure and Save before time runs out with Bitdefender Exclusive Clearance Offer! Get Bitdefender Total Security 2018 Now!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?