Twitter shares surged at the US open Thursday as the social media firm posted its first ever profit in the fourth quarter of 2017.
Twitter shares opened in the green in the US Thursday, after the social media company announced its first ever profit in the fourth quarter of 2017. However, Twitter’s results also showed a 3% decline in full year revenues compared with 2016.
Twitter shares opened 29.53% higher at 34.87% after releasing its earnings results ahead of the opening bell, Thursday. Twitter shares closed 0.04% lower at $26.91, Wednesday.
Twitters results impress
Twitter’s latest results release impressed investors ahead of the US open and that positive tone extended into the US trading session.
Twitter said its full year 2017 revenue slid 3% to $2.443 billion.
However, the US-based business also said it had a good end to the year after posting EBITDA profits of $308 million in the fourth quarter, a 42% gain from $215 million a year earlier.
Fourth quarter revenue hit $732 million, up from $717 million in Q4 2016. Q4 advertising revenues, meanwhile, were up 7%.
“Q4 was a strong finish to the year,” said Jack Dorsey, Twitter CEO.
“We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit DAU growth. I’m proud of the steady progress we made in 2017, and confident in our path ahead,” Dorsey added in the earnings press release.
Twitter user growth also positive
Twitter also reported some good user growth numbers. While it achieved user growth of 4% in 2017 versus 2016, it’s active daily user growth rose by a more impressive 12%.
Twitter told its shareholders that it continues to see ad growth as a priority for the social media firm. And, in a similar vein to Snapchat’s ad revenue improvements, Twitter reported a 42% decline in cost per engagement, while overall ad engagements rose 75%.
“Advertising revenue increased 7% year-over-year, reflecting better-than-expected growth across all major products and geographies,” Twitter said in a letter to shareholders.