Shareholders of Twitter are doing the happy dance today after the social media giant reported its first quarterly profit since it listed as a public company in 2013.
In the last three months of last year, Twitter posted a profit of $117.1 million – up significantly from a loss of $214.8 million during the same period in 2016.
The positive result was mainly due to Twitter’s expenses falling by 28 per cent in the fourth quarter, steered by a reduction in stock-based compensation.
The company saw quarter-on-quarter revenue growth of 2 per cent to $940.6 million, with advertising revenue up 1 per cent to just under $828 million.
Twitter CEO described the quarterly result as a “strong finish to the year”.
“We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double-digit DAU growth,” he said.
“I’m proud of the steady progress we made in 2017, and confident in our path ahead.”
Looking ahead, Twitter said in a statement to shareholders that it remains focused on improving its core ad offerings through better performance and measurement, including ad platform improvements, self-serve measurement studies, and third-party accreditation.
The company is also looking to tap into new channels of demand, such as online video, and introducing new ways to buy ads on Twitter, including alpha testing of programmatic buying.