Twitter reports Q2 net loss of US$145 million despite growth in mobile business

Twitter reported a widened loss despite increasing revenue during the second quarter, with mobile continuing to play an increasingly prominent role.

The microblogging company reported revenue for the quarter ended June30 of US$312 million, up 124 per cent year-on-year and a healthy increase on the US$250.5 million reported for the first quarter.

However, it reported a net loss of US$145 million, up from US$42 million for the equivalent period in 2013, and from US$132 million for the prior quarter.

Mike Gupta, Twitter’s CFO, said the net loss during the period included US$158 million of stock-based compensation expenses.

Mobile monthly active users reached 211 million during the period, a 29 per cent year-on-year increase. Mobile users represented 78 per cent of total monthly active users, which totalled 271 million, up 24 per cent.

In addition, mobile accounted for 81 per cent of total advertising revenue, which reached US$277 million during the period, up 129 per cent.

During the period, Twitter launched a mobile app promotion, enabling developers to develop install-and-engagement via the platform. It also agreed to acquire TapCommerce, which provides mobile retargeting and re-engagement advertising.

Twitter’s outlook for the third quarter projects revenue of between US$330 million and US$340 million, with stock-based compensation expenses projected at between US$180 million and US$190 million, excluding potential equity awards in relation to future acquisitions.

The company raised its revenue forecast for the year as a whole to between US$1.31 billion and US$1.33 billion, from US$1.2 billion to US$1.25 billion predicted in its first quarter results.