Twitter slightly beats on earnings, grows daily users by 14%
Oct 29 2017
Both adjusted earnings per share and revenues topped analysts' expectations.
But what's interesting is that millions of "new users" still visit Twitter each day - a mixture of brand new people creating a Twitter account for the first time and those who are re-booting an existing account that's been dormant for more than a month, what Twitter calls "resurrected" users.
Twitter has struggled to grow its user base for years.
Twitter announced it had to readjust its monthly active users (MAUs) all the way back to the fourth quarter of 2014 because it had accidentally counted users of a third party app service as its own.
Twitter shares rallied 8.2 percent in pre-market trading following the release of the results.
Revenue: $590 million versus $587 million expected.
In addition, Twitter's guidance for next quarter suggested if they hit the high end of its adjusted EBITDA estimates of between $220 million to $240 million estimates it could be GAAP profitable.
Net loss for its third quarter 2017 narrowed to $21.10 million or $0.03 per share from $102.87 million or $0.15 per share in the same quarter previous year. Sales declined 4 percent to $589.6 million.
"We're pleased with the improvements made toward a return to revenue growth this quarter". And Twitter said daily active users - a metric for which it has declined to offer details - rose 14 percent from past year. Quarterly non-GAAP net income was $77.85 million, or $0.10 per share, compared to $61.39 million, or $0.09 per share in the prior year.
Revenue for the quarter declined about 4% to $589.63 million from $615.93 million a year ago.