Twitter is soaring after reporting its first quarterly profit

Shares of Twitter are soaring, up more than 20% in early trading Wednesday, after the social media company reported better than expected fourth-quarter results which included its first quarterly profit.

Twitter reported revenue of $US731.6 million – 6.6% above the $US686.4 million that Wall Street had expected. On a per-share basis, the company earned an adjusted $US0.12; missing the $US0.14 that Wall Street was anticipating.

While quarterly revenue rose just 2% year-over-year, Twitter managed to cut costs by 28%, resulting in the company’s first profitable quarter – a goal CEO Jack Dorsey laid out on an earnings call in February 2017.

“Q4 was a strong finish to the year,” Dorsey said in a press release. “We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit daily active user growth. I’m proud of the steady progress we made in 2017, and confident in our path ahead.”

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.