cbc.ca (© Copyright: (C) Canadian Broadcasting Corporation, http://www.cbc.ca/aboutcbc/discover/termsofuse.html#Rss)
Updated: Tue, 29 Jul 2014 16:56:28 GMT | By CBC News, cbc.ca

Twitter stock up 30% as company doubles revenue



Twitter CEO Dick Costolo, center, and Mike Gupta, chief financial officer of Twitter, wait for shares to begin trading during the IPO, on the floor of the New York Stock Exchange, Thursday, Nov. 7, 2013. If Twitter's bankers and executives were hoping for a surge on the day of the stock's public debut, they got it. The stock opened at $45.10 a share on its first day of trading, 73 percent above its initial offering price. Richard Drew/Associated Press

Twitter CEO Dick Costolo, center, and Mike Gupta, chief financial officer of Twitter, wait for shares to begin trading during the IPO, on the floor of the New York Stock Exchange, Thursday, Nov. 7, 2013. If Twitter's bankers and executives were hoping for a surge on the day of the stock's public debut, they got it. The stock opened at $45.10 a share on its first day of trading, 73 percent above its initial offering price. Richard Drew/Associated Press

Shares in social media company Twitter spiked after hours on Tuesday as the company revealed it more than doubled its revenue in the last quarter and now claims 271 million people actively use its service every month.

Twitter posted quarterly results after markets closed that showed the company took in $312 million in revenue in the three months up to the end of June. That's an increase of 124 per cent over the same period a year ago.

The company also now has 271 million active monthly users, a 24 per cent increase from a year ago. The revenue and user increases were both better than analysts had been expecting.

The company also managed to show strong improvement in monetizing that growing user base in the quarter. The company makes most of its money from ads, and on that front, Twitter took in $277 million in ad revenue in the quarter. That's more than double last year's level.

Despite the growth, the company is still losing money, with a quarterly loss of $145 million. That compares with a smaller loss of $42 million last year.

more video