Twitter Posts Second Quarterly Profit in a Row, Beats Estimates

Jack Dorsey-Getty-H 2016
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The San Francisco-based social media company, led by CEO Jack Dorsey, reported its latest result early in the day.

Twitter early Wednesday reported better-than-expected first-quarter earnings after posting its first quarterly profit in the fourth-quarter report.

Before the stock market opening bell, the San Francisco-based social media company, led by CEO Jack Dorsey, also reported higher quarterly revenue and monthly active usage.

Twitter posted first-quarter earnings of $61 million, or 16 cents per share, exceeding Wall Street estimates, after a year-ago loss of $62 million. The result meant the second quarterly profit for the company. Quarterly revenue of $655 million rose 21 percent from the year-ago figure.

The company's number of total monthly users reached 336 million for the quarter, compared with 330 million in the fourth quarter and up 3 percent from the year-ago period.

"We made meaningful progress in our ongoing safety and information quality work in the first quarter, and we are continuing to invest in improving the quality of content and the overall health of the conversation on Twitter," the company said in a letter to shareholders. "Our ability to detect malicious automation, spam, and fake accounts ... improved significantly. Our systems continue to identify and challenge millions of suspicious accounts globally per week as a result of our sustained investments in improving information quality on Twitter."