Financial News

  • 30 July 2014, 19:42

Twitter Share Price Soars As Popularity Grows

Twitter shares have soared after the social network reported rapidly rising user numbers.

In its quarterly report, it said the number of monthly active users had hit 271 million - up 24% year-on-year.

However its quarterly loss widened to $145m (85.6m) from a $42m (24m) loss in the same period last year.

Despite this, stock rose by more than 30% in after-hours trading to $49.61 (29.28).

The results showed that Twitter's income from advertising is up 129% to $277m (163m).

Ads served up on mobile devices accounted for 81% of that revenue.

Adjusted results - which exclude certain expenses and stock compensation - showed a small profit of $15m (8.8m).

Twitter's chief executive, Dick Costolo, said: "Our strong financial and operating results for the second quarter show the continued momentum of our business.

"We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter's appeal to an even broader audience."

It was the first Twitter earnings call for new chief financial officer Anthony Noto, who is replacing Mike Gupta.

Mr Noto said: "I came here with one belief, that we can build the largest audience in the world."

Twitter's Wall Street debut in November saw stock rise from its $26 (15) offer price to more than $70 (41), but the company has been hurt by concerns about slowing growth and doubts on profitability.

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