Twitter shares rise as a result of a positive quarterly update.
Twitter’s stock soared on Thursday after the messaging network reported better-than-expected quarterly results, including increases in sales, profit, and user base.
On revenue of $1.19 billion, net profit was $66 million, above Wall Street projections.
According to the San Francisco-based IT giant, this compares to a loss of $1.38 billion in the same quarter a year ago.
The number of “monetizable” daily users increased by 11% to 206 million in the third quarter, compared to the same period previous year.
Twitter stated in a statement that “ongoing product improvements and global debate around current events” had resulted in more users using the site.
Market analysts were afraid that the withdrawal of former US president Donald Trump from the platform, as well as the lack of election-year fervor, would lead to a drop in usage.
Following the revelation of the earnings numbers, Twitter shares were up more than 6% in after-market dealings.
In an earnings release, Twitter CEO Jack Dorsey said, “We’re shipping more, learning faster, and attracting great people.”
“There is a huge chance to get the entire world to use Twitter.”
The quarter was marked by “better-than-expected performance across all main products and locations,” according to Twitter’s chief financial officer, Ned Segal.
According to eMarketer analyst Nazmul Islam, Twitter’s user base grew at a slower pace than it had in a long time, while ad revenue increased by 87 percent.
“Digital ads were in high demand across the market, and Twitter was critical to many brands,” Islam added.
“Because of the size of the user base, user growth may continue to decrease, but we can expect substantial growth in advertising revenues next quarter as well.”