Twitter shares are sharply higher Thursday, after the social media platform reported stronger-than-expected third quarter earnings results. The micro-blogging site said revenues climbed above forecasts, despite a decline in monthly active user figures, following an account purge.
By around 1650 BST, Twitter shares were 15.45% higher at $31.80. The stock has been a little mixed in recent weeks’ trading.
Twitter Q3 earnings
Twitter reported its third-quarter earnings update, which showed total revenues climbed 29% from a year earlier to hit $758 million in the three months ending September. That was boosted by a 29% increase in advertising revenues which totalled $650 million, the tech firm said.
That better-than-anticipated ad sales climb came as Twitter has upped its live sporting broadcasts, allowing users to watch US Major League Soccer and Baseball games.
“We’re achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service,” said Twitter’s CEO, Jack Dorsey.
The social media platform’s chief finance officer highlighted its financial success.
“Our third quarter results reflect our success with advertisers, delivering revenue growth of 29% and better than expected growth across most products and geographies,” said Ned Segal, Twitter's CFO.
“We are demonstrating Twitter’s unique value proposition for advertisers through innovative ad formats, better relevance and continued improvement in ROI. Advertisers are choosing Twitter to reach the most valuable audience when they are most receptive,” Segal added.
Twitter user number fall
Twitter’s positive earnings figures and stock price rise have failed to be dented by a decline in its average monthly active user figures.
The site achieved 326 million monthly active users in the third quarter, down from 330 million in Q3 2017 and also below the 335 million in the second quarter of 2018.
A number of details worked to lower that number in Q3, not least a purge on fake accounts, hate speech and other inauthentic accounts.
“We’re doing a better job detecting and removing spammy and suspicious accounts at sign-up,” Dorsey said.
Looking ahead, Twitter said it is expecting:
- Pre-tax earnings of between $320-$340 million.
- Adjusted pre-tax margin of between 39% and 40%.
- Capital expenditures of between $60-$85 million.