Twitter gives shareholders something to tweet about with first quarter earnings beat

Micro-messaging web site operator Twitter Inc (NYSE:TWTR) caught analysts on the hop with first quarter earnings way above expectations.

The shares raced ahead in pre-market trading, surging almost 9% to US$15.97 as it posted earnings per share of 11 cents.

This was down from 15 cents in the same period of 2016, but well ahead of the two cents a share for which analysts had been bracing themselves.

On a generally accepted accounting principles, or GAAP, basis, the company made a loss of nine cents a share, versus a loss the year before of 12 cents.

Adjusted net income of US$82.40mln was down from US$102.72mln a year earlier, as the company continued to struggle to make money from its enormous user base.

Revenue in the first three months of 2017 clocked in at US$548mln, down 8% year-on-year, but the company was heartened by a 6% increase in the average number of monthly users to 328mln from 319mln in the preceding quarter.

Average daily active usage grew 14% year-on-year, an acceleration from 11% in the fourth quarter, 7% in the third quarter, 5% in the second quarter and 3% in the first quarter of 2016.

Daily active usage increased 14% Y/Y, the 4th consecutive quarter of accelerating growth. #TWTR

— TwitterIR (@TwitterIR) April 26, 2017

“We’re proud to report accelerating growth in daily active usage for the fourth consecutive quarter, up 14% year-over-year,” said Jack Dorsey, Twitter’s chief executive officer.

“We’re delivering on our goal to build a service that people love to use, every day, and we’re encouraged by the audience growth momentum we saw in the first quarter. While we continue to face revenue headwinds, we believe that executing on our plan and growing our audience should result in positive revenue growth over the long term,” Dorsey said.

Some wags suggested the increased usage was entirely down to Donald Trump’s back-room team.

President Trump is the best thing that ever happened to $TWTR stock. Its sad they work so hard against him.#TWTR

— Ise Malaka (@ise_malaka) April 26, 2017

Story by ProactiveInvestors