Twitter reported lower than expected Q115 revenue with the blame levelled at lower consumer demand for its new products.
Revenues were $436m, up 74% year-on-year, but below forecasts. Net loss increased to $162m, up from $132.36m in the same period last year.
Average monthly active users (MAUs) of the service have however increased 18% year-on-year to 302 million in Q1. The company had 288 million MAUs in the last quarter.
Average Mobile MAUs represented about 80% of total MAUs.
Twitter CEO Dick Costolo said: "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."
The company expects the negative impact on its revenue to continue for the rest of the fiscal year.
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Twitter expects its second quarter revenue to be in the range of $470m to $485m. Full year revenue is projected to be between $2.17bn to $2.27bn.
Twitter has agreed to acquire marketing technology firm TellApart, which offers cross-device retargeting capabilities to retailers and e-commerce advertisers via product ads and email marketing.
The company has partnered with Google’s DoubleClick platform to improve advertising performance measurement and attribution for direct response marketers.
