Twitter has revealed it made $312m in revenue for the second quarter of 2014, and that its user base grew to 271 million, although its losses increased to $144m.
Twitter’s revenue marked a 124 percent increase on the same period last year when it brought in $139m, demonstrating the firm's platform and reach with web users is of increasing interest to advertisers.
Specifically, Twitter said advertising revenue was $277m for the quarter, up 129 percent on the same period last year, and 81 percent of this was spent on mobile advertising. Data licensing accounted for $35m, a 90 percent increase over the same period last year.
These figures clearly impressed investors with the firm’s share price rocketing up by over 20 percent in pre-market trading, adding billions to the company’s valuation.
This boost to its share price came despite the company reporting a significant increase in its losses, which were $145m for the period, up from $42m in the same period last year.
Purchases of company's like TapCommerce, Gnip and SnappyTV were closed in the quarter, Twitter confirmed, which could well be the cause of the increased losses. It also revealed it spent $44m on "property and equipment" in Q2 of 2014.
The chief executive of Twitter, Dick Costolo, said that the growth proved the firm was heading in the right direction, and he cited recent major events as proof Twitter was the most popular social platform.
"Our strong financial and operating results for the second quarter show the continued momentum of our business," he said.
"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."
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