Apr 25, 2018

Twitter continues to grow, remains profitable

Photo: Jaap Arriens/NurPhoto via Getty Images

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.

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Scoop: Inside the Trump campaign's big hedge on Facebook

Illustration: Eniola Odetunde/Axios

The Trump campaign has invested most of its advertising budget to date on Facebook, testing thousands of versions of ads per day to maximize its spending.

But behind the scenes, a source familiar with the campaign tells Axios, the thinking has shifted: "As everyone can see, we still have strong spending on Facebook, but the percentage of our total media budget [on Facebook] is shrinking."

Trump's revenge tour has the House in its sights

Illustration: Aïda Amer/Axios. Photo: Saul Loeb/Getty Contributor

In the lead-up to the 2018 midterm elections — buoyed by Republican control of both chambers — President Trump viewed campaigning for the House as a lower-tier priority and instead poured his energy into rallying for the Senate.

But after the GOP reckoning in 2018, and experiencing firsthand how damaging a Democratic-led House has been to him, Trump is now personally invested in helping Republicans regain the majority in November, several people familiar with his thinking tell Axios.