World Cup gave Twitter a huge burst in traffic

Written by New York Times | San Francisco | Updated: Jul 31 2014, 07:02am hrs
The World Cup had a second winner: Twitter. The social networking company reported strong growth in the second quarter, driven in part by heavy use of the service by soccer fans around the world during the month long tournament. Twitters results far exceeded analyst estimates.

During the World Cup, we delivered the kind of events experience that Ive wanted to see from us for some time, Dick Costolo, Twitters chief executive, said in a conference call with analysts. Revenue soared 124% during the quarter and the average number of people using the microblogging service in its June quarter was up 6 % from its March quarter. However, Twitter reported a continued decline in how much people were using the service, as measured by timeline view. Despite the flat usage of the service, the company demonstrated a striking ability to extract more advertising revenue from each user.

Twitter reported a net loss of $145 million, or 24 cents a share, compared with a loss of $42 million, or 32 cents a share, a year ago.

Excluding certain stock-based compensation and acquisition costs, the company had a profit of $15 million, or 2 cents a share, compared with a net loss of $16 million, or 12 cents a share, a year ago. On that adjusted basis, analysts expected the company to report a loss of 1 cent a share.