Twitter announced its Q3, 2014 earnings last night and it has beat analyst estimates by posting revenue of $361 million. Additionally, the micro blogging site also announced that it now has over 284 million monthly active users. Also Read - Twitter vs Koo: Nigeria government joins India's Koo app after Twitter’s ban in the country
Twitter’s $361 million revenue is above analysts’ estimation of $351.35 million. This is also up 114 percent year-over-year, and in comparison, its revenue in Q2 was $312 million. “We had another very strong financial quarter” Dick Costolo, CEO of Twitter said. “I’m confident in our ability to build the largest daily audience in the world, over time, by strengthening the core, reducing barriers to consumption and building new apps and services.” Also Read - Twitter seeks more time to comply with new rules in response to “one last notice”
As mentioned above, Twitter also announced that its monthly active users had crossed 284 million. This is a 23 percent increase year-over-year, and 13 million more than Q2. While this is an impressive rise, the growth rate has in fact slowed down. In essence there was a 4.8 percent rise in the number of users between Q2 and Q3. In comparison, Twitter’s monthly active user base grew by 6.2 percent between Q1 and Q2. Also Read - Twitter ban: India's alternative Koo now available in Nigeria
Twitter further broke down the numbers saying, of the total monthly active users, 80 percent access Twitter from their mobile devices. Timeline views reached 181 billion in Q4, which too is a 14 percent rise year-on-year.
This slow growth had an effect on Twitter’s stocks, which were down 10 percent in after-hours trading. But Costolo tried to allay fears in an interview with CNBC’s Julia Boorstin. “I would also say about our business specifically that across the landscape of $1 billion digital advertising businesses, we are the fastest growing business within that landscape,” he said.
Boorstin also referred to the 284 million MAUs as not a dramatic jump. To this Costolo responded, “We have an aspirational goal to build the largest daily audience in the world. And that audience is comprised of what I would call three geometrically eccentric circles. At the core, you have those 284 million monthly active users who create all the content that is used across the rest of the entire system. In the circle beyond that, you have the hundreds of millions of users who come to twitter but don’t log in. Those logged out users, and we have talked about the size of that audience a little bit.” He also mentioned how one of the aims was to turn these logged out users into regular users.