Twitter has revealed it made $312 million in revenue for the second quarter of 2014, and that its user base grew to 271 million, although its losses increased to $144 million.
Twitter’s revenue marked a 124 percent increase on the same period last year when it brought in $139 million, demonstrating the company’s platform and reach with Web users is of increasing interest to advertisers.
Specifically, Twitter said advertising revenue was $277 million for the quarter, up 129 percent on the same period last year, and 81 percent of this was spent on mobile advertising. Data licensing accounted for $35 million, a 90 percent increase over the same period last year.
These figures clearly impressed investors, with the platform’s share price rocketing up by more than 20 percent in pre-market trading, adding billions to the company’s valuation.
This boost to its share price came despite the company reporting a significant increase in its losses, which were $145 million for the period, up from $42 million in the same period last year.
Purchases of company’s like TapCommerce, Gnip, and SnappyTV were closed in the quarter, Twitter confirmed, which could well be the cause of the increased losses. It also revealed it spent $44 million on “property and equipment” in Q2 of 2014.
Twitter’s chief executive, Dick Costolo, says the growth proves Twitter is heading in the right direction, citing recent major events as proof Twitter is the most popular social platform.
“Our strong financial and operating results for the second quarter show the continued momentum of our business,” he says.
“We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter’s appeal to an even broader audience.”
This article was originally published on V3.