Twitter reports first profit

File: The Twitter share price soared on the news that it had finally turned a profit. Photo: Loic Venance / AFP

WASHINGTON - Twitter reported its first-ever quarterly profit on Thursday, delivering a boost to shares of the social network, which had been lagging for years behind fast-growing rivals.

The San Francisco-based messaging service said it earned $91-million (R1.1-billion) in the fourth quarter, the first positive net income since it went public in 2013.

READ: Amazon CEO Bezos asks Twitter followers how to donate his money

Revenue was up two percent from a year ago to a better-than-expected $732-million, while the number of monthly active users rose modestly to 330 million.

Twitter shares surged nearly 15 percent in pre-market trade on the news.

 

The profitability marks a milestone for Twitter, which has lost money consistently since its public offering, sparking speculation on whether it needed to sell itself to keep operating.

Chief executive Jack Dorsey welcomed "a strong finish to the year" and added: "I'm proud of the steady progress we made in 2017, and confident in our path ahead."
 

AFP

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