Posts Tagged ‘twitter earnings’
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Twitter has just reported it first-ever post-IPO earnings and they’ve significantly beaten analyst expectations, with Q4 2013 revenue of almost $243 million, up 116 percent year-on-year, and a positive earnings per share (EPS) of 2 cents.
Analysts had expected a loss of 2 cents per share and $218 million Q4 revenue.
Twitter’s first post-IPO earnings report is due on the close of business today and, with the company’s stock up more than 150 percent above its IPO price and hovering bullishly not far from all-time highs, investors are eagerly awaiting something from Twitter that will justify its fairly loft valuation.
Two things to watch in this earnings report are signs of growth in overall ad revenues, and also a boost in total user base numbers.
Google earned more than half of the $8.8 billion spent worldwide by advertisers on mobile internet ads in 2012, giving the search giant a 52.36 percent share of global ad revenue.
This year, both the global mobile ad market and Google’s share therein is expected to almost double, with eMarketer forecasting mobile internet ad revenues of $8.85 billion for Google in 2013 from $15.82 billion overall, far ahead of second-placed Facebook, which is tipped to earn $2.04 billion (12.9 percent share).
One of the most effective – and lucrative – advertising products on Twitter is the Promoted Trend, which allows brands to dominate the Trending Topics on Twitter with a hashtag or phrase that sits right at the top of the list, thus guaranteeing high visibility and, one would assume, clicks.
This prominence comes at a price – back in February, the cost of a Promoted Trend on Twitter in the U.S. was hiked to an eye-opening $200,000. For one day. This is all relative, of course. There are more users of Twitter in the U.S. than in any other country, so they can charge more. A 24-hour Promoted Trend in the UK costs around £20,000, simply because, proportionately, less people will see it. But those figures add up, and they add up fast. In March alone, Twitter raked in more than $5 million from Promoted Trend advertising, and that was simply from sales made in the States.
Market research company eMarketer has raised its forecast for advertising revenue on Twitter, with the firm predicting $582.8 million in ad spending on Twitter in 2013 and $950 million in 2014.
This is an upward revision from a previous report that forecast $800 million in ad revenue for Twitter by 2014.
Twitter has launched its long-awaited, heavily-rumoured and much-requested advertising API, which promises to reward marketers for “being good, not for being loud”, and have announced five early partners who have been working with the API and can now offer advertising features to their clients.
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