Dallas, Texas 08/15/2014 (FINANCIALSTRENDS) – Twitter Inc (NYSE:TWTR) microblogging company did upstage the earnings reports, this quarter. The earnings in this quarter proved to be stronger, over previous earnings call.
The cause of this celebration is apparently due to the ad revenue growth, which has resulted in higher engagement as well as Monthly Active Users. The second positive aspect which drove Twitter’s fantastic quarter was the advertising spending on the mobile platform.
Twitter Inc (NYSE:TWTR) in the previous quarter had reported poor earnings which resulted in the stock of this microblogging site plunging downward.
However, in the recent three months, the change has been more evident. It began on the trading day itself with stock prices gaining by 12%.
Advertisement Revenue Leads Growth
According to, Twitter Inc (NYSE:TWTR) CEO Dick Costolo, the earnings call reportedly grew by 125% on the year to year basis, which marked the growth for the fourth quarter on a continual basis. The consecutive increase marked revenue growth.
The growth was marked by addition of features as well as products which will drive the advertisements growth. The Ad Model has led the growth similar to what Facebook (NASDAQ:FB) has been offering. The new Twitter account will allow advertisers to pay for objectives which marketers are oriented – app downloads clicks as well as RTs.
The model now allows advertisers to pay specifically for what they need and more specifically for what they want.
The bottom line for the current gains the stock is making, even as social networks begin to see more competition, is its advertising-based engagement for its businesses. There are detractors who claim that the Football World Cup fever did push the numbers up, but this quarter’s performance will prove Twitter’s strengths.
