Shares of Twitter, Inc. skyrocketed on Wednesday morning after the struggling social media platform reported greater than expected user growth in its first-quarter earnings report.
Twitter blew user growth estimates out of the water by adding 9 million monthly active users (MAUs) in the first quarter of 2017. The social network now boasts 328 million monthly users, which is still well below rivals Facebook Inc. and Instagram.
Just a week ago, our consensus estimate, which was based on the independent research of 20 analysts, called for Twitter to hit 320.8 million MAUs in the quarter.
Twitter grew its U.S. user base in the first quarter by 3 million. It took Twitter all of 2016 to add roughly that many users in the U.S.
The company also reported that its daily active usage increased 14% year-over-year, which marked the fourth consecutive quarter of growth in that important revenue-generating area.
Since the micro-blogging company released its quarterly earnings report on Wednesday morning, Twitter’s stock price jumped 11.08% to $16.28 per share in morning trading. Twitter is currently a Zacks Rank #3 (Hold).
On top of the boost in users, Twitter reported revenues of $548.3 million in the first quarter, which beat Zacks Consensus Estimate of $512.1 million. Twitter lost far less than the estimated $0.16 per share, reporting a loss of $0.05 per share. The increased user numbers played a big part in both of Twitter’s relatively big beats.
Twitter reported a $40.3 million operating loss, but that figure came in much lower than the $59.1 million loss the company posted a year earlier.
The Jack Dorsey-led company’s revenues were down 7.8% year-over-year, due in large part to the fact that Twitter now makes less money per ad due to the shift to auto-play video ads. However, the positive user growth has helped give Twitter a much-needed boost, as investors continue to give the company a shot in the arm on Wednesday.
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Here's Why Twitter (TWTR) Smashed Earnings and Revenue Estimates
Shares of Twitter, Inc. skyrocketed on Wednesday morning after the struggling social media platform reported greater than expected user growth in its first-quarter earnings report.
Twitter blew user growth estimates out of the water by adding 9 million monthly active users (MAUs) in the first quarter of 2017. The social network now boasts 328 million monthly users, which is still well below rivals Facebook Inc. and Instagram.
Just a week ago, our consensus estimate, which was based on the independent research of 20 analysts, called for Twitter to hit 320.8 million MAUs in the quarter.
Twitter grew its U.S. user base in the first quarter by 3 million. It took Twitter all of 2016 to add roughly that many users in the U.S.
The company also reported that its daily active usage increased 14% year-over-year, which marked the fourth consecutive quarter of growth in that important revenue-generating area.
Since the micro-blogging company released its quarterly earnings report on Wednesday morning, Twitter’s stock price jumped 11.08% to $16.28 per share in morning trading. Twitter is currently a Zacks Rank #3 (Hold).
On top of the boost in users, Twitter reported revenues of $548.3 million in the first quarter, which beat Zacks Consensus Estimate of $512.1 million. Twitter lost far less than the estimated $0.16 per share, reporting a loss of $0.05 per share. The increased user numbers played a big part in both of Twitter’s relatively big beats.
Twitter reported a $40.3 million operating loss, but that figure came in much lower than the $59.1 million loss the company posted a year earlier.
The Jack Dorsey-led company’s revenues were down 7.8% year-over-year, due in large part to the fact that Twitter now makes less money per ad due to the shift to auto-play video ads. However, the positive user growth has helped give Twitter a much-needed boost, as investors continue to give the company a shot in the arm on Wednesday.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>