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Twitter Records a Net Loss of $645m

Is Twitter a viable investment?  Will the company see continued growth? These two are some of the questions investors are asking themselves after the company reported its maiden earnings that saw a net loss of $645m. This earnings report comes just three months after the company went public and the loss is not so convincing for most investors.

Most analysts had expected worse results from the company, so a loss of $645m is still better for most of them. The loss also represent revenue growth of 116% year over year.

What concerns most people is the insignificant rise in twitter users and activity on the site. The company saw an increase in 3.8% in monthly users to 241 million. This shows that very few users register on the site and those already there are not as active as before.

Most of the revenue on Twitter is through selling advertising space and data on tweeting habits. The company made $220m from advertising representing growth of 121%. Most ads revenue came from mobile users. To be exact 75% of the ad revenue Twitter has recorded came from mobile users.

The company expects to make revenue profits of between $230-240m for the period ending March 2014. This they hope to achieve by improving users experience with custom timelines and allowing users to send and receive images via direct message.

Has Twitter reached its peak? Will we see any further growth in new users and revenues? Share your thoughts in the comment section below.

About author

Editor at TechArena. I cover all things technology and review new gadgets as I get them. You can reach me on email: kaluka@techarena.co.ke
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