In what was its second ever financial report Twitter reported a large increase in revenue but a wider net loss, while mobile became a more significant contributor to revenue.

The microblogging service reported revenue of $250.5 million, up 119 per cent year-on-year, and ahead of its previous guidance of $230-240 million.

The $132 million net loss was significantly greater than the $27.0 million loss reported for Q1 last year, and was attributed to $126 million in expenses related to stock-based compensation.

Despite its year-on-year increase, the Q1 net loss was significantly less than the $511.5 million reported for Q4 2013.

Advertising revenue increased 125 per cent at $226 million, with mobile accounting for around 80 per cent of the total. In the previous quarter, mobile accounted for 75 per cent of the $220 million in advertising revenue generated.

Mobile monthly active users (MAU) increased 31 per cent year-on-year, to reach 198 million. Year-on-year growth in mobile users slowed compared to Q4 2013 though, when it was 37 per cent.

Compared to the previous quarter, mobile MAUs increased 7.6 per cent, higher than the 4 per cent rise seen between Q3 and Q4.

Mobile users represented 78 per cent of the total average MAUs of 255 million, which increased 25 per cent year-on-year. This increase was 30 per cent for the prior quarter.

Timeline views increased 15 per cent year-on-year at 157 billion, up from 148 billion in Q4 2013. Advertising revenue per thousand timeline views was $1.44, up 96 per cent year-on-year.

During the first quarter, Twitter launched improved tools for advertisers to target audiences more effectively while the addition of mobile publishing company MoPub allowed it to reach more than one billion iOS and Android users every month.

Twitter CEO Dick Costolo said that the company had a strong first quarter with revenue that accelerated year-on-year, “fuelled by increased engagement and user growth”.

However, investors were unconvinced by the results, with Twitter’s share price falling to its lowest level since the company made its stock market debut in November last year.

Looking to the second quarter, Twitter expects revenue to rise again to reach $270-$280 million. It expects stock-based compensation expense to be between $170 million and $180 million, excluding the impact of equity awards related to potential acquisitions.

For 2014 as a whole, revenue is forecast to hit $1.2 billion-$1.25 billion, with stock-based compensation expense of $640-690 million, and capital expenditure in the $330 million to $390 million range.

Twitter’s full-year revenue in 2013 reached $664.9 million, up from $316.9 million the year before.