Twitter has announced its Q1 2015 results, and the financials were weaker than expected, with the full year expectations for 2015 being consequently lowered.
Revenue for the quarter (which ran up to the end of March) hit $436 million (£283 million), which was up a healthy 74 per cent on Q1 2014, but below the expected target of $440 million to $450 million (£286 million to £292 million).
Twitter said that revenue was negatively impacted by a worse than expected performance from “newer direct response products”, and that this will affect the rest of the year going forward, as mentioned.
The social network announced that it incurred a loss of $162 million (£105 million) in the quarter, with non-GAAP net income of $47 million (£30 million).
CEO Dick Costolo commented: “While we exceeded our EBITDA target for the first quarter, revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products. It is still early days for these products, and we have a strong pipeline that we believe will drive increased value for direct response advertisers in the future.
“We remain confident in our strategy and in Twitter's long-term opportunity, and our focus remains on creating sustainable shareholder value by executing against our three priorities: strengthening the core, reducing barriers to consumption and delivering new apps and services."
As for Twitter’s usage stats, monthly active users were up 18 per cent year-on-year, reaching 302 million in Q1, an increase of 14 million over the previous quarter. Mobile users were 80 per cent of that total average monthly user figure.
Twitter also announced that it has acquired marketing tech firm TellApart, and the fact that it has partnered up with Google's DoubleClick to improve advert performance measurement for Twitter direct response marketers.
The company’s stock plunged following the revelation of the figures, and indeed closed 18 per cent down on the NYSE.