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Twitter share price up despite losses

Twitter’s share price has made sharp gains despite reporting a second quarter net loss of $145m

Twitter’s share price has made sharp gains despite reporting a second quarter net loss of $145m, three times greater than the loss for the same period the year before.

The social media firm’s share price increased more than 30% in after-hours trading, driven better-than-expected revenues and user numbers that allayed investor fears of stalled growth.

Twitter reported revenues of $312m, up 124% compared with the same period the year before, and said it had 271 million monthly users, up 24% from the year before.

Revenues beat analysts’ average expectation of $282.8m, reported The Guardian.  

The firm said it had gained 16 million new users during the quarter, 13 million internationally and 3 million in the US, according to the BBC.

"Our strong financial and operating results for the second quarter show the continued momentum of our business," said chief executive 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.”

Advertising revenue grew 129% to $277m, with mobile advertising accounting for 81% of total advertising revenue.

Mobile advertising revenue proved to investors that, like Facebook, the firm is making a successful transition to mobile ad revenue as more users access the service from mobile devices.

Twitter said mobile monthly active users reached 211 million in the second quarter of 2014, an increase of 29% year-over-year and representing 78% of the total number of users.

The social media firm expects revenue for the third quarter of 2014 range from $330m to $340m, while revenue for the full year is expected to be in the range of $1,31bn to $1,33bn.

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