Twitter, which was founded in 2006, reported its first quarterly profit this morning. The news sent shares soaring more than 20% in pre-market trading.
On a per-share basis, net income for the fiscal fourth quarter came in at 12 cents, compared with a 23-cent loss per share in the same period a year ago.
Twitter’s stock on Wednesday spiked almost 7% in the wake of social-media peer Snap Inc.’s strong quarterly numbers and optimism about Twitter’s quarterly results.
In a press release announcing the numbers, the company said revenue growth in the quarter “was driven by continued strong engagement growth, improved revenue features, improved ROI, and better sales execution.”
Monthly active users reached 330 million for the quarter, up 4% compared with a year earlier but flat with the third quarter. Revenue of $732 million for the quarter increased from $717 million a year ago and beat analysts’ estimates for $686.5 million.
Questions remain about Twitter’s road ahead. Anthony Noto, the company’s COO and, as a Goldman Sachs alum, a management figure esteemed by Wall Street, recently left the company to run social lending company SoFi.
While the social platform has regained relevance in the current political climate, ad monetization and video strategy are among the areas of concern for many analysts.