Twitter’s Ad Business Grows, but Eyes Are Peeled on Disappointing User Growth
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Twitter CEO Dick Costolo declared last quarter that Twitter was taking measures to make the service more welcoming to new users. Evidently there’s a lot more work to be
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Two growth stories that are crucial to the fate of the company — now up to 3,000 employees — are currently unfolding: one of ads and one of users. In the case of the former, the news is very good for Twitter. Total revenue grew to $250 million in the first quarter of 2014, up 119% year over year and also up slightly from the holidays. More than 90% came from advertising, and 80% percent of that ad revenue came from mobile, up from 75% in the previous quarter.
Meanwhile, ad revenue per thousand “timeline views” — a metric that represents every time users refresh their Twitter streams — was up 96% to $1.44, a good indicator that Twitter is getting better at
extracting revenue out of user engagement.
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