Twitter Inc (NASDAQ: TWTR) shares soared in early trade as the social media titan’s revenue in the fourth quarter beat expectations.
Revenue for the three months came in at over US$1 billion for the first time in a quarter, at US$1.01 billion, cruising past Wall Street estimates of US$996.7 million.
“We reached a new milestone in the fourth quarter with quarterly revenue in excess of $1 billion, reflecting steady progress on revenue product and solid performance across major geographies, with particular strength in US advertising,“ Ned Segal, Twitter’s chief financial officer, told investors.
The results come after shares last October plunged when revenue was lower than expected and the company laid the blame on various issues, including bugs in its mobile app advertising system.
There was also positive news for the company on Thursday on user numbers.
A key metric of so-called ‘monetisable’ daily user numbers, namely those who it gives advertising, hit a record 152 million in the fourth quarter, which is up 21% year-on-year and more than the 147.5 million expected by analysts.
But Twitter’s profits fell short of expectations in the quarter. Earnings per share were US$0.25 versus US$0.29 expected.
The company also warned that costs were expected to rise by 20% in 2020 as it takes on more staff and creates a new data centre.
The stock jumped over 15$ to US$38.51 in New York.