Twitter Inc. (TWTR) shares surged on Thursday, Oct. 26, after the company reported third-quarter revenue beat expectations.
Twitter shares were up 12% early Thursday.
The social media company reported third-quarter revenue of $590 million, a 4% drop from the same period last year, but beatg analysts' expectations of $586.7 million.
The company's monthly active users came in at 330 million for the quarter, broadly in line with expectations, and an increase of 4 million from the previous quarter. Average daily average users grew 14% year over year, an increase from 12% year-over-year growth in the prior quarter and marked the fourth consecutive quarter of double-digit growth.
The company, however, said that it would have to readjust its monthly active users all the way back to the fourth quarter of 2014 because it had counted users of a third-party app as its own.
Twitter reported earnings of 10 cents a share, compared to expectation of 6 cents.
"This quarter we made progress in three key areas of our business: We grew our audience and engagement, made progress on a return to revenue growth, and achieved record profitability," said Twitter CEO Jack Dorsey in a statement. "We're proud that the improvements we're making to the product continue to bring people back to Twitter on a daily basis."
Twitter said Thursday that it now expects adjusted EBITDA to be in the range of $220 million and $240 million in the fourth quarter with the adjusted EBITDA margin between 35% and 36%.
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