Twitter share price rockets after turning a profit for the first time


Twitter is heading for at least a year high when US markets open (Source: Getty)

Twitter's share price rocketed as markets opened in the US after reporting its first ever profit in what chief executive Jack Dorsey called a "strong finish to the year".

Shares leaped as much as 30 per cent after reporting net income came in at $91m, compared to a loss of $167m in the same quarter the previous year, signalling its first ever quarterly profit.

And there was a two per cent rise in revenue in the fourth quarter to $732m, ahead of the $686m analysts had expected.

Shares touched $35 in early trading, hitting a more than two-year high.

Monthly active users (MAU) remained flat on the previous quarter at 330m but grew four per cent year-on-year. Daily active users (DAUs), the exact figures for which it does not disclose, grew 12 per cent year-on-year.

For the full-year revenue came in at $2.4bn, down three per cent on the previous year, but losses narrowed to $108m from $457m. 

“We’re pleased with our performance in 2017 and our return to revenue growth in the fourth quarter,” said Twitter finance chief Ned Segal. 

“Total revenue in the fourth quarter increased two per cent year-over-year, and owned-and-operated advertising revenue increased seven per cent year-over-year, driven by continued strong engagement growth, improvements in our revenue products, improved return for advertisers, and better sales execution.”

The turnaround comes after a concerted effort to improve the product for users, having introduced features such as threaded tweets and doubled the character count from 140 to 280 characters.

Changes should continue to drive audience going forward, the company said in an earnings call.

Meanwhile, Snap shares pared back some of the gains made after it reported smashing expectations on Tuesday.

Stock dropped eight per cent on Thursday to $18.91 at pixel time. That's after rocketing nearly 50 per cent on Wednesday, it's biggest ever jump, to close at $20.75, the first time it surpassed its $17 IPO price since last summer.

Tags: Twitter