Twitter Reports Second Profitable Quarter In A Row, Beats Street Expectations

Twitter Reports Second Profitable Quarter In A Row, Beats Street Expectations

Twitter exceeded analyst expectations in the first quarter, thanks to better-than-expected revenue growth.

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The company reported per-share earnings of 16 cents, topping consensus analyst estimates of 12 cents. It booked revenue of $665 million, exceeding forecasts of $605.4 million for the first quarter.

“The first quarter was a strong start to the year,” Twitter CEO Jack Dorsey said in a statement. “We grew our audience and engagement, marking another quarter of double digit year-over-year (daily active user) growth, and continued our work to make it easier to follow topics, interests, and events on Twitter.”

The number of daily active users grew 10% in the first quarter, as Twitter worked to make the social media platform easier for users to follow topics, interests and events with curated timelines of tweets around breaking news events. The company also made strides in information quality and safety.

Revenue was up 21% year over year. Video accounts for more than half of the company’s revenue.

Investors liked what they saw: Twitter’s sock rose 5% in pre-market trading to $31.74.

Twitter turned its first profit in the fourth quarter of 2017, reporting earnings of $91 million and its fifth straight quarter of double-digit, year-over-year growth in the number of daily users. The social media platform credited new features that help people discover and talk about what’s happening on Twitter.