After 12 years, Twitter finally makes a profit

Twitter posted fourth quarter revenue of $732 million, up 2% year-over-year and reversing the trend of declining top-line numbers over the past few quarters. Wall Street expected revenue of $687 million and EPS of 14 cents. "We returned to revenue growth, achieved our goal of GAAP (generally accepted accounting principles) profitability, increased our shipping cadence, and reached five consecutive quarters of double digit DAU growth".

Twitter did report that its daily active user base grew by 12 percent, its fifth straight quarter of double-digit growth.

Investors shrugged off zero growth in Twitter's users from a quarter earlier, which the company blamed in part on seasonal weakness and its purge of fake and spam accounts. Analysts had modest expectations, and were looking for a jump of just 1 million.

The company attributes the U.S. user loss to "seasonality" and a change to the Safari web browser impacting its third-party app intergrations. Twitter debuted as a public company in 2013 at $26 a share. Advertising revenue increased 1 percent to $644 million. On a sour note, USA revenue decreased 8% to $406 million, however, worldwide revenue gained 17% to $326 million. The social media platform is also under scrutiny from congressional investigators into how Russian agents used Twitter, Facebook and Google to influence last year's US election.

What can Twitter do to increase user trust?

Twitter, like Facebook, has also been under pressure to do more to combat misinformation, fake accounts, hate speech and harassment.

Translation: Twitter may not have many, or in the United States, any, more users, but it has more real users, aka the kind that it can legitimately sell to advertisers.

The company said that over the next 12 months, along with as a focus on live and video, one of its revenue priorities was to improve its core ad offerings through upgraded performance and measurement.

And Twitter appears to continue to convince more of those actual users to become more regular users.

Twitter's stock - up 10 percent this year - has been outperforming Facebook's (NASDAQ: FB) since the start of 2018.

The platform's data licensing and other revenue also showed strong growth at 10% to $87m.

By taking a look at the stock's current statistics it can gauged that the stock candle is BULLISH with HIGH volatility. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser.

  • Arturo Norris