Microblogging website Twitter posted its first quarterly results yesterday since going public last year. The popular social platform announced Q4 2013 revenue of $243 million, exceeding analyst expectations.
Twitter has been hampered by its inability to monetise its offering, but going by this result, it seems it has managed to overcome this. Advertising revenues were at $220 million, forming a chunk of the fourth quarter revenues and showing an increase of 121 per cent YoY. Mobile ad spends accounted for 75 per cent of the total ad revenues.
However, the strong results were marred by the fact that Q4 2013 also saw the slowest quarterly user growth rate for Twitter (since it started disclosing numbers) of 3.8 per cent. Timeline views, which Twitter uses as an ad rate metric, also showed a decline. Reuters reports that Twitter stocks tumbled after hours on Wednesday to $54, down about 18 per cent on the New York Stock Exchange.
Meanwhile, Twitter also discussed its outlook for Q1 2014 as well as the entire year. The company expects projected revenues to be in the range of $230 million to $240 million in Q1, with total revenue over the year projected to be in the range of $1,150 million to $1,200 million.
Meanwhile, Facebook, a close rival of Twitter, posted strong Q4 2013 results earlier this month, with advertising revenue of $2.34 billion (76 per cent increase from the same quarter last year).