Summary: Twitter today released its third-quarter 2014 earnings. Earnings showed net revenue of 361 million U.S. dollars in the current quarter, up 114% from a year earlier, and a net loss of $175 million, a net loss of $65 million over a year earlier. Twitter's monthly average active user
Twitter today released its third-quarter earnings for 2014. Earnings showed net revenue of 361 million U.S. dollars in the current quarter, up 114% from a year earlier, and a net loss of $175 million, a net loss of $65 million over a year earlier. Twitter has an average monthly active audience of 284 million, up 23% from a year earlier,
Twitter's third-quarter revenue and diluted earnings per share, which were not measured by US GAAP, were $361 million trillion and $0.01 trillion, better than analysts ' expected $351.4 million and $0.01. Twitter expects its fourth-quarter revenue to be between $440 million trillion and $450 million trillion, while industry analysts expect $448 million trillion.
But the report still led to a 9% per cent plunge in Twitter's share price. The key reason is that Twitter's user activity is down by 7%. Twitter's user activism is linked to Twitter's advertising business. The timeline on Twitter's home page is based on user participation, but the index of user participation--item browsing--has fallen 7% globally, down 6% in the US.
The head of Twitter explained it,
Twitter to make it easier for users to read the improvement of the user's stay time on a single content increase, thereby reducing the number of page refreshes, and various reasons for the decline in the amount of item browsing.
Q3 's earnings to Twitter's chief executive, Dick Costello Dick Costolo, not only raises the level of user involvement, but also how to stabilize investors ' hearts.
Twitter's share price has risen by 19% since July, despite the World Cup's positive impact. But earnings showed a slight drop in Twitter's monthly average activity of 23% per cent compared with 24% in the second quarter, and investors began to worry that Twitter had reached its peak of growth as other media and social services became popular with Twitter users. At present 284 million of the user volume compared with Facebook's 1 billion, the gap is still very large.
In addition, online information services that have pushed Wall Street's expectations of Twitter higher in the fourth quarter are likely to fall below Wall Street's expectations. The service helped Twitter to win a 24% increase in registration rates around the world in the second quarter, thanks to the high growth that has raised Wall Street's expectations for Twitter in the third quarter.
All financial data is not as active as user data, which is a cautionary tale for domestic social platforms, such as the immediate release of earnings tweets.