Twitter remains unprofitable despite leap in sales
April 30, 2014 00:00
Los Angeles - Twitter posted a net loss of 132 million dollars, or 23 cents per share, in the first quarter compared to a net loss of27 million dollars in the same period last year, the San Francisco-based company reported Tuesday.
Sales for the social network were up 250 million dollars, an increase of 119 per cent compared to 114 million dollars in the same period last year, the report said.
The 132-million-dollar net loss included 126 million dollars in "stock-based compensation expense," the company said.
"We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth," Twitter chief Dick Costolo said.
"We also continue to rapidly increase our reach and scale."
Twitter's membership reached 255 million in the first quarter, an increase of just 25 per cent over the year, according to the report.
Twitter's share price fell more than 10 per cent following the announcement.