Twitter reports 2nd profitable quarter in a row and beats expectations

Twitter CEO Jack Dorsey.

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Twitter CEO Jack Dorsey.
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Mike Blake/Reuters

  • Twitter on Wednesday reported its second profitable quarter in a row, with first-quarter revenue jumping 21% year-over-year to $ 665 million.
  • The company beat Wall Street’s expectations.
  • Twitter CEO Jack Dorsey said it was a “strong start” to the year.

Twitter on Wednesday reported its second profitable quarter in a row as its first-quarter 2018 earnings beat Wall Street expectations.

Revenue hit $665 million (£477 million) in the first three months of 2018, a 21% increase on the same period last year. Monthly active users averaged 336 million for the quarter, an increase of 3% year-over-year.

The company’s net income was $61 million, marking its second month of profitability. It is a turnaround from the loss of $62 million in the first three months of 2017.

Twitter CEO Jack Dorsey said it was a “strong start” to 2018. Twitter shares were up as high as 14% after the company published its earnings. Follow Twitter on Markets Insider.

Below are the key numbers in Twitter’s Q1 earnings:

  • Earnings per share (adjusted): $0.16
  • Revenue: $665 million
  • EBITDA: $244 million
  • Monthly active users: 336 million

Here were the Wall Street analyst predictions seen by Business Insider:

  • Earnings per share (adjusted): $0.10 to $0.12
  • Revenue: $603 million to $612 million
  • EBITDA: $203 million to $214 million
  • Monthly active users: 332 million to 346 million

Twitter’s daily active users increased 10% year-on-year, marking a sixth consecutive quarter of double-digit growth. Daily active users were up 12% in the fourth quarter of last year. Twitter still won’t reveal exactly how many daily users it has.

The company posted advertising revenue of $575 million, up 21% on the first quarter of 2017. It said video had begun to account for more than half of its ad revenue and was the fastest-growing format in Q1.

“We grew our audience and engagement,” Dorsey said, “marking another quarter of double-digit year-over-year DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter.”