Of late, Twitter has been in the news for all the right reasons involving its various progresses and acquisitions. This time too, it has witnessed a healthy quarterly period (Q1) from its mobile share. Whilst revealing its financial results for Q1 2014, Twitter has announced that the service’s user growth has slowed while its mobile advertising share has increased. The social networking giant has surpassed a mark of 255 million monthly active users, out of which 198 million were active mobile users. Except for this, there are a couple of other milestones worthy to be taken note of as well.
– Average Monthly Active Users (MAUs) saw an increase of 25% year-over-year, which saw it reach to 255 million as of March 31, 2014.
– Mobile MAUs reached 198 million in the first quarter of 2014, an increase of 31%, which represents 78% of total MAUs.
– Advertising revenue totalled $226 million, an increase of 125%.
– Mobile advertising revenue reached approximately 80% of total advertising revenue.
However, the numbers for the last quarter were quiet different. There were 241 million monthly active users and 184 montly mobile active users. Mobile which constituted 65% of advertising revenue for Q2 FY2013 saw it rise by 75% making it $165 million of the $220 million that Twitter made in ad revenues.
A slight fall in the buying price of the stocks can be expected as investors would still not get carried away with the generation of ad revenue. They would however be aiming for an increase in the user growth, along with the mobile advertising parameter. Since the first quarter of the year has opened well, it is expected to maintain momentum in the near future as well.
As visible from the numbers mentioned above, growth still remains to be a concern for Twitter, It is still having problems attracting new members and the recent design changes and the profile re-design is a move aimed at attracting new users. Though Twitter is not actually facing problems making money via mobile, it is the user adoption that can prove to be a concern for investors.