Twitter Q1 beats estimates with $250M in revenue

Twitter also picked up 14 million monthly active users in the three-month period, for a total of 255 million MAUs. That tally disappointed investors.


Twitter released its Q1 earnings report after the bell Tuesday, marking the social networking site's second earnings report since becoming a public company last November. 

Twitter's first financial disclosure in February didn't go so well. Despite growing its user base and doubling revenue, the company reported a net loss of $511 million for Q4. Let's see how the numbers shaped up this time around: 

The micro-blogging platform reported a first quarter net loss of $132 million, or $0.23 per share (statement).

Non-GAAP EPS were totally flat at $0.00 per share, compared to $0.08 in the year ago period, with a non-GAAP net income of $183,000.

Revenue held strong however, coming in at $250 million, up 119 percent year-over-year. 

Wall Street was expecting Twitter to have lost almost $159 million, or about $0.03 cents a share, on revenue of $241.47 million.

CEO Dick Costelo reflected on the three-month period in prepared remarks, finally giving a shoutout to MoPub, the mobile ad exchagne Twitter bought in October:

We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth. 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.verage Monthly Active Users (MAUs) were 255 million as of March 31, 2014, an increase of 25% year-over-year.

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Twitter reported that it picked up 14 million monthly active users in the three-month period, for a total of 255 million MAUs. Analysts were expecting 257 million or so. Monthly mobile active users were strong at 198 million.

A closer look revenue segments shows a breakdown of how some of Twitter's recent investments are paying off:

  • Advertising revenue totaled $226 million, an increase of 125 percent year-over-year.
  • Mobile advertising revenue was approximately 80% of total advertising revenue.
  • Data licensing and other revenue totaled $24 million, an increase of 76 percent year-over-year.
  • International revenue totaled $70 million, an increase of 183 percent year-over-year. International revenue was 28 percent of total revenue.

For the next quarter Twitter projects revenue to be in the range of $270 million to $280 million.

But by the end of trading Tuesday, the revenue growth was not enough for Twitter's stock, as user growth spooked investors. Twitter's share price hit an all-time low of $38.50, down from the previous all-time low of $38.80.