Twitter, Inc. | $TWTR Stock | Shares Surge On Impressive Q3 Results

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Twitter, Inc. (NYSE: TWTR)

Twitter stock soared more than 14% to $31 in premarket trading on Thursday after the social media giant posted better than expected top and bottom line results for its fiscal 2018 third-quarter.

The number of monthly active users dropped 1% ear-over-year to 326 million from 330 million, but average daily users grew 9%.

Twitter said that the number of monthly active users declined partly because of the new privacy laws that were recently implemented by the European Union as well as the company’s continuing efforts to crack down on fake accounts.

Shares of the company have declined nearly 30% in the past three months and 14% since the beginning of the year.

TWTR Earnings & Outlook

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Twitter reported a revenue of $758.1 million, up 29% from $590 million in the same period a year ago. Net income was $789 million, or $1.02 per share, compared with a loss of $21 million, or $0.03 per share, in the prior-year quarter.

Earnings adjusted for special items were $0.21 per share, up from $0.10 in Q3 of 2017. Refinitiv, based on analyst estimates, expected adjusted earnings of $0.14 per share on $702.6 million revenue.

Advertising revenue increased 29% on from the earlier-year period to $650 million in the third-quarter of 2018. International revenue jumped 30% to $335 million, while U.S. revenue increased 28% to $423 million on a year-over-year basis.

Looking ahead, the company views fourth-quarter adjusted EBITDA in the range of $320 million to $340 million.

Twitter CEO Comments

“We’re achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service. We’re doing a better job detecting and removing spammy and suspicious accounts at sign-up. We’re also continuing to introduce improvements that make it easier for people to follow events, topics and interests on Twitter, like adding support for U.S. TV shows in our new event infrastructure. This quarter’s strong results prove we can prioritize the long-term health of Twitter while growing the number of people who participate in public conversation,” commented Jack Dorsey, chief executive officer of Twitter.

Twitter, Inc. Company Profile

Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others.

It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content.

Further, it provides subscription access to its public data feed for data partners. The company has operations in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California. –Yahoo Finance