Twitter revenue up 114% in Q3, while net losses increase to $175 million
The great thing about being a social media start-up is the losses – you can have them. The terrible thing about publishing is you can not (and there are so few start-ups).
Twitter this afternoon reported its third quarter earnings and it had an impressive quarter of revenue growth. Revenue climbed 114 percent to $361.3 million – of this, 85 percent was from mobile.
Net losses also increased, to $175.5 million from $64.6 million in the same quarter of 2013. For the full year, for every two dollars that come into Twitter, a dollar too much is spent to produce a profit.
“We had another very strong financial quarter” said Twitter CEPO Dick Costolo. “I’m confident in our ability to build the largest daily audience in the world, over time, by strengthening the core, reducing barriers to consumption and building new apps and services.”
Twitter has plenty of cash reserves with approximately $3.6 billion in hand. But investors will, like with Amazon, at some point wonder if there is any light at the end of the tunnel. Because of this, investors were taking down the stock in after hours trading (down between 8-9 percent).