Twitter appears as if it is beginning to head in the right direction. On Thursday, the microblogging site posted a fourth quarter profit; the first quarterly profit since it became public dating back to 2013. The news helped push share prices up over 12% to close at $30.18, the highest the stock has been in over two years.
CEO at Twitter Jack Dorsey posted on the site that the company did what it said it was going to do, and the self-discipline and focus of the company continues improving.
Dorsey continued by saying how proud he was of the whole Twitter team and thanked the shareholders for their support and patience. He ended his post by saying 2018 would be a great year for Twitter.
The user count for Twitter increased by 4% during the quarter to over 330 million per month, while it was not a huge increase, it was something. Those using the service each day grew by 12% from the same quarter one year ago, representing the fifth straight quarter of gains in double-digits.
One tech analyst said the user growth for Twitter was astounding considering there was barely any growth just two years ago.
Twitter is now using algorithms in an attempt to show tweets that are the most important first, and in reverse chronological order, making the site even more engaging.
Social media companies have enjoyed a strong week except for Facebook. Snap posted results on Tuesday that showed revenue was better than had been expected, and a loss that was somewhat narrower. Shares soared following the news.
Facebook however said it made changes that lowered the number of hours its more than two billion users were on its pages.
Twitter posted a $91 million profit for the final quarter of 2017 in comparison to a $167 million loss for the same period one year ago.
Twitter’s margins were better, its expenses lower and its stock-based compensation fell sharply.
Other figures did not impress as much. Revenue increased only 2%, ending the quarter at $732 million. Revenue produced by advertising, which represents the majority of Twitter’s revenue, was up just 1%. In general, the company was able to exceed low expectations.
One Wall Street analyst said Twitter still faces strong headwinds including one over its leadership. CEO Dorsey splits time between Twitter and Square, the digital payments company he runs. In January, Twitter’s COO Anthony Noto, who was one of Dorsey’s closest deputies, resigned to become CEO of Social Finance the online lender.