Twitter Inc has finally turned a quarterly profit. It took 12 years for Twitter to a reach a quarterly profit.
Twitter published its fourth-quarter earnings and as expected, the company posted a modest profit, pulling in $91 million on $732 million in revenue.
The report comes as a positive sign Twitter, which spent the second half of 2017 explaining how Russian-linked accounts — including automated bots — influenced content on its platform around the 2016 U.S. presidential election.
The shares soared as much as 30 percent, the most since Nov. 7, 2013, to $35. They were trading at $31.14 at 12:59 p.m. in New York, bringing gains over the past 12 months to about 66 percent.
Twitter has also struggled to attract many new users in recent years, and has reportedly contended with multiple stalled takeover bids, and several departures of high-ranking executives, including its longtime chief financial officer Anthony Noto last month.
Twitter’s user base has stayed effectively the same size as it was last quarter, and annual revenue might be down slightly, but this might not matter too much to investors.
The company may have finally achieved a size and structure that will allow it to operate without losing money.
“I think they’ve come a long way,” Greenfield said.
“The product has dramatically improved. They’re doing a better job of showing the right tweets to the right people at the right time.” Greenfield added that “consumer or user happiness is making advertisers want to be there.”
“Twitter is finally heading in the right direction after years of a “one step forward two steps back” strategy,” said Daniel Ives, head of technology research at GBH Insights, in a note to clients.