Since going public in November of 2013, Twitter had never finished a quarter in the black – until now. According to Forbes, Twitter “announced fourth-quarter net income of $91 million on Thursday. Last year, the firm reported a loss of $167 million in the same period.”
CEO Jack Dorsey was happy to share his thoughts alongside the earnings. “Q4 was a strong finish to the year,” Dorsey said in a statement. ““We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence and reached five consecutive quarters of double digit [daily active user] growth.”
It took Twitter cutting costs by 28 percent in that quarter to make that income. But it seems it was worth it. Following the announcement of it earnings, Twitter shares surged 27 percent. Forbes explains that the company also saw some increased revenue in other areas: “Advertising revenue in the quarter increased 1% year over year, totaling $644 million. Revenue from data licensing and other operations, meanwhile, was $87 million, gaining 10%.”
In the fourth quarter of 2017, Twitter saw 330 million monthly average users, which was about a four percent increase from the same time in 2016.
Source: Forbes.com – Twitter Records First-Ever Profit, Shares Surge In Pre-Market Trading
Published: February 8, 2018