Social media arena is highly volatile and is fluctuating at a rapid rate day-by-day. Major networking sites like Facebook Inc. (NASDAQ:FB), Twitter Inc. (NYSE:TWTR) and LinkedIn Corp. (NYSE:LNKD) continue to display interesting quarter-over-quarter results in both user growth and revenue figure. San Francisco based Twitter is continuously drilling itself to provide a strong reply to analysts’ predictions as it ended Q2 of 2014 with mind-boggling $312 million in revenue, embarking a growth rate of 124% Y-O-Y.
Twitter Is Clearly A Heartthrob For Investors: Timeline Views Rose To Whopping 173 Billion
The world’s largest micro-blogging site is on rampage with astounding revenue figures in successive quarters. After its dream IPO debut the investors had a merry-go-round journey with stock price traversing in both the directions. But, in Q2, 2014 micro-blogging firm’s growth rate has been quite impressive with revenue figures surpassing $300 million mark. By the end of 2014, revenue is predicted to surge beyond the 1 billion mark, attributing to its impeccable growth scope.
In Q2, 2014, Twitter’s revenue reached to $312 million, a 124% increase on a Y-O-Y basis and 24.8% increment when compared to the previous quarter. If we consider only advertising revenue, Twitter’s tally rose up to $277 million, up by 129% year-over-year. Mobile advertising revenue accounted for 81% of total advertising revenue, which is approximate $224 million. Twitter, which was born as mobile network is bound to increase its share of mobile revenue in future. Even the international revenue, apart from the US, showed positive signs with year-over-year growth of 168%, accounting to $102 million – 33% of total revenue. If we consider Ad revenue per 1000 timeline views, the tally rose up by 100% from $0.8 to $1.6 in the last year. The overall timeline views spiked up to 173 billion, up by 15%, compared to the same quarter last year. With such a stupendous growth rate Twitter is bound to be a hot-stock at the Wall street.
Twitter has continually strived to provide advertisers with better ROIs and more sophisticated targeting options. Mobile app promotions, website cards and expansion of geo-targeting options are amongst the ad initiatives in Q2 of 2014. Mobile app promotions allow advertisers in increasing engagement on site and drive installs. Website cards were quite useful in surfacing website content within a tweet, thereby aiding the website traffic rate. It also expanded its advertising products like Geo targeting to wider regions with the objective of meeting needs of local advertisers. It is mainly focused on SMBs in Spain, Israel and South Africa.
Mobile Monthly Users Accounted For 78% Of Overall User Base
The overall tally of MAUs (Monthly active users) rose up to 271 million, out of which 78% operated the site from miniature devices – mobile devices. Mobile monthly active users rose up by 15% year-over-year owing to its continuously evolving features in the mobile arena. The company worked extensively on product building to make it more exciting and user-friendly. Twitter had initiated new user experience around the World Cup, which included real-time scoring, push notifications, event, voting ballot feature and match timelines. In its video product Vine, private messaging option, and new web profiles were launched.
Twitter is now more focused on users outside the US as scope for growth in developing economies is much higher. By 2018, of the predicted user base of 400 million, APAC region is likely to account for 40% of Twitter’s user base. If we compare the ratio of advertising revenue by the user base at the country level, we can observe that in developed states the ratio is much higher when compared to developing economies. Hence it is vital for the microblogging firm to speed up their revenue growth from advertisers of developing nations.
Social media sites ended up in a profit margin of 2% compared to 1% loss which analysts had predicted. Increasing social media obsession and addiction to mobile devices is likely to sway in favourof the 140 char device firm due to its real-time news service and affiliation to the mobile platform. Acquisition of firms like Gnip, SnappyTV (platform for video editing) and TapCommerce (platform for re-engagement advertising) is bound to aid the micro-blogging firm in establishing a firm foothold in the arena.