Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Twitter more than doubles its sales, stock soars

Shares were trading at around $52 in after-market hours, up more than 30 percent

Article comments

Twitter more than doubled its sales in the second quarter, the company reported Tuesday, showing a strong advertising business.

Total sales were for the period ended June 30 were US$312 million, the company said, up 124 percent from the same period last year and beating analysts' expectations of $283 million, as polled by Thomson Reuters.

Twitter makes the bulk of its sales through ads placed in users' streams and made to look like tweets.

The company still hasn't turned a profit though. Twitter reported a net loss of $145 million.

Excluding share-based compensation and other adjustments, Twitter's earnings per share was $0.02, beating slightly analyst estimates of a loss of $0.01.

Twitter shares were trading at around $52 in the after market hours, up more than 30 percent from a close of $38.59.

"Our strong financial and operating results for the second quarter show the continued momentum of our business," CEO Dick Costolo said in the company's announcement.

Twitter has shown it can make money through advertising, but its ability to expand its audience has been a concern to financial analysts. The company reported having 271 million monthly active users on Tuesday, up 24 percent from the same period last year.

On a quarterly basis though, Twitter grew its users by roughly 6 percent, from 255 million reported this past April.

Facebook, one of Twitter's largest competitors, has more than 1.3 billion monthly active users.

Twitter will hold a conference call following its announcement to discuss the results. During that call, Costolo and other company executives may discuss the numbers of Twitter "nonusers" -- people who are exposed to Twitter content on other sites or screens, but who don't log in to Twitter. Twitter content was shown on screens in general, for instance, during the World Cup.

But it will be hard for Twitter to make money from nonusers. Twitter's targeted ads are served partly based on how people use its service when they're logged in, such as by how they tweet or whom they follow.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *