Twitter continues to be profitable as it continues to add users


TWTR -2.40%

reported its profitable second quarter as a publicly traded company, a sign of vindication for a company that has worked for a long time to turn the attention of its users in a viable company.

Twitter had reported its profitable first quarter as a publicly traded company in the period ending December 31. It had set the goal of "driving towards" profitability in 2017.

The company said on Wednesday that revenues in its first quarter rose 21% from the previous year to $ 664.9 million. Analysts polled by Thomson Reuters expected $ 605.4 million in revenue.

The company recorded a gain of $ 61 million, or 8 cents per share, compared to a loss of $ 61.6 million, or 9 cents per share, in the same quarter of the year before.

On an adjusted basis, Twitter gained 16 cents per share, above the 12 cents per share that badysts expected.

Twitter said it added six million people who use their product monthly since the fourth quarter, adding their total user base to 336 million. Analysts expected Twitter to add 5 million monthly users in the quarter, according to FactSet.

The company now has 69 million monthly users in the US UU And 267 million abroad. In the USA UU., The number of monthly users fell by 1% compared to the same quarter of the previous year.

Twitter said that the number of users who use their product daily grew 10% over the previous year, a growth rate lower than last year. The company does not disclose the actual number of daily users.

Stocks rose 5.3% in pre-market trading after the report.

Advertising revenues increased 21% to $ 575 million as users committed to more sponsored publications, even when the cost per sponsored contract fell.

Global data revenue from Twitter increased by 20%. The data has been a bright spot for Twitter, because the margins for selling data are broader than the ads it sells. Still, Twitter has been scrutinized for selling data about its users. Data sales represent approximately 13% of Twitter's revenue.

Meanwhile, Dorsey said recently that he was not proud of how his company handled malicious activity on Twitter, and said Twitter seeks to hire outside experts to help him measure the quality of conversations on his social network.

For the current quarter, Twitter projected adjusted earnings before interest, taxes, depreciation and amortization of between $ 245 million and $ 265 million, more than the $ 217 million that badysts expect, according to FactSet. [19659017] -Austen Hufford contributed to this article

Write to Georgia Wells in [email protected]


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