Twitter said Q1’15 revenue was slightly lower than the earlier forecast of $440-$450 million due to a lower-than-expected contribution from its newer direct response products. The company expects this revenue impact to continue for the remainder of the fiscal year. Q1 net loss stood at $162 million.
“While we exceeded our EBITDA target for the first quarter, revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products,” said Dick Costolo, CEO of Twitter. "It is still early days for these products and we have a strong pipeline that we believe will drive increased value for direct response advertisers in the future. We remain confident in our strategy and in Twitter’s long-term opportunity, and our focus remains on creating sustainable shareholder value by executing against our three priorities—strengthening the core, reducing barriers to consumption and delivering new apps and services.”
Advertising revenue totalled $388 million, an increase of 72 per cent year-over-year. Mobile advertising revenue was 89 per cent of total advertising revenue. Data licensing and other revenue totaled $48 million, an increase of 95 per cent year-over-year. International revenue totalled $147 million, an increase of 109 per cent year-on-year and constituted 34 per cent of total revenue.
Meanwhile, Twitter also made two key announcements that will see it strengthen its direct response capability. Firstly, the company said that it had entered into an agreement to acquire TellApart, a marketing technology company with focus on the retail and e-retail sector. It has also announced a partnership with Google’s DoubleClick under which it will make its inventory available through the DoubleClick Bid Manager.
Average Monthly Active Users (MAUs) were 302 million for the first quarter, up 18 per cent year-over-year and compared to 288 million in the previous quarter. Average mobile MAUs represented approximately 80% of total MAUs.
For Q2’15 Twitter says revenue is projected to be in the range of $470 million to $485 million while adjusted EBITDA is projected to be in the range of $97 million to $102 million. Meanwhile, readjusted revenue for the full year 2015 is projected to be in the range of $2.17-$2.27 billion.
Earlier, Twitter’s Q1 2015 financial results were leaked before the company announced it. This lead to Twitter’s share price slumping 18 per cent. However, share prices had strengthened later.