Twitter's advertising revenue increases by 125% despite slow down in user growth

Twitter has revealed a 119% growth in revenue to $250m, with advertising revenue having grown by 125 per cent to $226m, despite user growth slowing with an increase of 5.8 per cent.

The company reported that its user rate had reached 255 million active users during the first quarter, below analyst expectations, which has seen its share price fall as a result, while it also reported a net loss of $132m during the same period. Meanwhile, its timelines reached 157 billion views for the first time, an increase of 15 per cent, while mobile MAUs grew to 198 million during the first quarter, an increase in 31 per cent year on year.

Of its total advertising revenue, mobile made up approximately 80 per cent, while data licensing and other revenue grew by 76 per cent to reach $24m.

Dick Costolo, CEO of Twitter, described the first quarter as “very strong”

He added: “Revenue growth accelerated on a year over year basis fuelled by increased engagement and user growth.

"We also continue to rapidly increase our reach and scale. With the integration of MoPub, we now reach more than 1 billion iOS and Android users each month, making us one of the largest in-app mobile ad exchanges in the world and the only one at scale to offer native in-app advertising."

The company has projected its revenue to be between £270m-£280m for the second quarter of 2014, with adjusted EBITDA projected at between $25m - $30m, while the full year is projected to generate revenue of between $1,200m and $1,250m, with adjusted EBITDA forecast as ranging between $180m to $205m.

During the same period, the company expanded partnerships with Nielsen, Kantar and GfK, and launched a number of improved tools for its advertisers.