Twitter is spiking after saying it could finally turn a profit
- Twitter is up 12.25% in early trading before earnings.
- Twitter reported a beat on earnings and revenue.
- The company said it overstated monthly users in the past, but still saw growth in the third quarter.
Twitter reported a beat on its third-quarter earnings ahead of Thursday's opening.The company earned an adjusted $0.10 per share, doubling the Wall Street consensus of $0.05 per share. It took in $590 million in revenue, compared to the $587 million that analysts were expecting.
Shares of Twitter rose as much as 12.25% immediately following the results.
The company said its number of monthly actives users climb 4% versus a year ago to 330 million. It also said the number of daily active users was up 14% from a year ago, but didn't give a number.
Twitter disclosed that it had overstated monthly users in its previous earnings reports. The company said that by including certain third-party apps in its measurements, it had mistakenly overstated the number of users by 1 million in the fourth quarter of 2016 and 2 million in the first half of 2017.
The company said that with cost-cutting measures, it expects to turn a profit in the fourth quarter.
Twitter is up 16% this year after its post-earnings bump.