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  • Twitter has added twelve new countries to its ad network, called Twitter Ads, in the EMEA region.
  • In our original article we said that despite Twitter's user growth remaining sluggish, its ad revenue growth continues to be robust; however, we didn't expect international expansion so soon.
  • The micro-blogging company’s expansion of ad network confirms our thesis that Twitter’s stock is attractively valued.

Twitter (NYSE:TWTR) said that it has expanded its ad network to 12 new countries in the EMEA region. The countries are: Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Macedonia, Romania, Serbia, Slovenia, Switzerland, Ukraine and Portugal. "There has been tremendous growth in this region over the last year, and Twitter Ads will now be available in 35 EMEA (Europe, Middle East, and Africa) markets through direct sales support teams and reseller partnerships," the company said in its announcement.

Clearly, the micro-blogging company is boosting its global presence, particularly in Europe. Twitter launched a tool for building maps of real-time conversations in the UK in July, and it extended its Certified Program in June with the addition of five internationally focused companies. Twitter purchased MoPub, a mobile-focused ad exchange in the latter half of 2013, which the company uses to add native ads to mobile apps.

We believe that Twitter's initiative makes sense as the company is getting positive feedback from brands around the world about how their recent product developments helped them achieve various goals. Twitter reported gross ad revenue of $277 million in the second quarter of 2014, an increase of 129% year-on-year. Revenue from mobile ads grew to 81% of total ad revenues. In our original article, we said that mobile ad spending is expected to grow by leaps and bounds in the next few years, and Twitter has tremendous prospects in mobile ads. To learn more, read our original article.

Business relationship disclosure: The update has been written by a BB Research stock analyst. BB Research is not receiving compensation for it (other than from Seeking Alpha). BB Research has no business relationship with any company whose stock is mentioned in this article.

Source: Update: Twitter Added 12 New Countries To Its Ad Network