Twitter announced its quarterly earnings report, and the numbers have beaten all expectations. The quarterly revenue almost doubled with the company reporting revenue of $479 million in the fourth quarter, up 97 percent compared with $243 million a year ago. Also Read - Explained: Can Twitter get banned in India?Also Read - Twitter vs government: Twitter India loses legal protection for not complying with IT rules on time
“We closed out the year with our business advancing at a great pace. Revenue growth accelerated again for the full year, and we had record quarterly profits on an adjusted EBITDA basis,” said Dick Costolo, CEO of Twitter. “In addition, the trend thus far in Q1 leads us to believe that the absolute number of net users added in Q1 will be similar to what we saw during the first three quarters of 2014.” Also Read - Twitter friends/followers seeking your unwanted attention could be Unmentioned
Advertising revenue per thousand timeline views reached $2.37 in the fourth quarter of 2014, an increase of 60 percent year-over-year. Revenue in the fourth quarter through advertising was $432 million, an increase of 97 percent year-over-year, out of which 88 percent came through mobile.
However, even with such great revenue numbers, the company’s user numbers fails to catch up. Twitter said it had 288 million regular users on its platform, an addition of only 4 million people from the previous quarter. The company also announced a loss of approximately 4 million net monthly active users in the fourth quarter, and a year-on-year user base increase of just 20 percent.
In the last quarter, Twitter released a slew of new features including Direct Messaging group chats, Tweet video, ability to send links through DM and much more. Twitter even introduced an Instant Timeline feature which helped new users get the hang of Twitter and its extensive offerings quickly. The company announced yesterday, that it has struck a deal with Google to now integrate tweets in its search results as well.
After the Twitter earnings report was out, the shares of the company were up by a massive 10 percent. For the current quarter, Twitter forecasts revenue of $440 million to $450 million.