Twitter recorded revenues of $595m during the first quarter of 2016 amounting to a net loss of $80m for the period, primarily due to brand marketers not increasing their ad spend as had been previously forecast, according to the social network’s latest results.
“Revenue came in at the low end of our guidance range because brand marketers did not increase spend as quickly as expected in the first quarter,” according to Twitter’s latest earnings release, this is despite its total revenue for the period amounting to a 36 per cent year-on-year increase.
Advertising revenue totalled $531m, an increase of 37 per cent year-over-year, with mobile advertising revenue amounting to 88 per cent of this total. Data licensing and other revenue accounted for the remainder of its takings for the period, totalling $64m, an increase of 34 per cent year-over-year, according to the filling.
Twitter’s total average monthly active users (MAUs) were 310 million for during the period, up 3 per cent year-on-year, with this number comparing to 305 million in the previous quarter.
A statement announcing the earnings read: “We also saw deepening engagement (likes, replies and Retweets) driven by a few important product launches, including the enhancements to the timeline and the Twitter-Periscope integration.”
It continued: “We see a clear opportunity to increase our share of brand budgets over time. We have a strong product roadmap designed to tap into incremental brand-oriented online video budgets, and will deliver additional features for advertisers later this year — including more detailed demographic targeting and verification, and reach and frequency planning and purchasing.”
The additional earnings release additionally noted that in its outlook for Q2 it expected revenue to be in the range of $590m to $610m.
Twitter's leadership team is to give a more comprehensive breakdown of the above results here during its latest earnings call.