Twitter continues to grow, remains profitable
Twitter shares spiked Wednesday in pre-market hours after beating Wall Street expectations on earnings and revenue.
Why it matters: Strong earnings helped the company achieve its second quarter as a profitable company since going public in 2013 with $61 million net income. Twitter credits strong advertising growth, especially in video, for revenue increases.
The bigger picture: It's a bigger example that the "techlash" against social media companies isn't taking hold in the markets. Google also beat its earnings expectations and Facebook is poised to do so when it reports numbers later today.
By the numbers, via CNBC:
- Revenue: $665 million, up 21% year over year, beating a Thomson Reuters estimate of $608 million.
- Earnings per share: 16 cents vs. 12 cents, expected by Thomson Reuters.
- Monthly Active Users (MAUs) 336 million vs 334.2 million, per a StreetAccount and FactSet estimate.