Twitter released its first quarter 2014 earnings on Tuesday after the closing bell, and while it beat Wall Street expectations on the top and bottom line, its stock is still down nearly 8 percent in after hours trading. The company announced quarterly revenue of $250 million, up 119 percent year-on-year and about $9 million more than Wall Street was calling for, and $0 EPS, beating an expected -3 cents.
Wall Street may be concerned about its user base, which is still relatively small compared to social network behemoth Facebook. Twitter now has 255 million monthly active users, up 25 percent year-on-year. While that might seem impressive, it actually shows slowing user growth rates. In Q4 2013, Twitter said it had 241 million monthly active users, up 30 percent year-on-year. Since then, it has only added 9 million users, or about 3 million monthly active users per month. Meanwhile, timeline views increased 15-percent year-on-year to 157 billion views – that, again, is impressive on the surface but still shows relatively slow growth.
Advertising revenue increased 125 percent year-on-year, however, likely due to new initiatives the company is making in that space, and mobile ad revenue generates 80 percent of the company’s total ad revenue. Twitter also pulled in $24 million in data licensing revenue and $70 million in international revenue.
Twitter said it expects its revenue to fall between $270 million and $280 million during the second quarter of this year.