Social-media company Twitter posted its second consecutive quarter with a profit to open 2018. It is the first time with back-to-back positive quarters since the company went public.
Twitter suffered losses in 16 straight sessions after first going public. The stretch lasted from the fourth quarter of 2014 to the fourth quarter of 2017. Still, the company remained optimistic.
Now, with consecutive profits under its belt, Twitter looks to build on its success. Analysts also expect the growth to continue. The business plans to report increased earnings for the remaining three quarters of 2018.
Twitter Blows By Revenue, User Expectations
Experts were expecting revenue of $605.4 million for Twitter in the opening months of 2018. However, the company brought in just under $665 million. Video advertisements on their website and app accounted for over half of the company’s revenue, though.
After accounting for expenses, the social-media giant turned a profit of $61 million. That profit averages out to about 8 cents per share. In the first quarter of 2017, Twitter lost over $61 million.
It may not seem like much, but it shows a move in the right direction. Investors were eager to see if the final quarter of 2017 was sustainable or just an anomaly.
One analyst from SunTrust Robinson Humphrey Inc. says 2018 is looking quite healthy. Also, he added that momentum is growing for the business.
Along with growing profits, Twitter is expanding its user base as well. In the three months opening 2018, the company reports a gain of six million monthly users. Additionally, the growth surpasses the expected increase of five million.
The site now boasts 336 million people who visit monthly. Sixty-nine million of those users reside in the United States. The other 267 million are world-wide users.
The majority of Twitter’s revenue comes from advertising. Quarterly ad revenue rose 21 percent to $575 million to open 2018. Still, the company expects video ads to continue to take more significant portions of its revenue.