Twitter Soars On Q3 Earnings, Possible GAAP Profit In Q4

Twitter Soars On Q3 Earnings, Possible GAAP Profit In Q4

Twitter Soars On Q3 Earnings, Possible GAAP Profit In Q4

Excluding certain one-time expenses, Twitter earned 10 cents per share in the third quarter, above expectations of 7 cents per share.

For the fourth quarter, the company expects adjusted EBITDA to be between $220 million and $240 million, adjusted EBITDA margin to be between 35% and 36%, capital expenditures to be no more than $110 million. This compares with a quarterly GAAP net loss of $103 million, representing a GAAP net margin of (17%) and GAAP diluted EPS of ($0.15) in the same period a year ago.

Twitter posted a loss of 3 cents per share in the third quarter, which was slightly better than the loss of 11 cents per share share that analysts projected.

Twitter has announced its Q3 2017 earnings and the stock is up in pre-market trading as a result of increased sales and user growth, reports CNBC.

Twitter has never had a profitable quarter based on generally accepted accounting principles (GAAP), but it said on Thursday "we will likely be GAAP profitable" in the fourth quarter if it reaches the high end of its own estimates.

Chief executive Jack Dorsey said: "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".

Twitter last month released full-year earnings covering its United Kingdom operations, which showed a slight rise in turnover from £76 million to £79 million in the year to December 31 2016, according to accounts filed at Companies House.

"We're pleased with the improvements made toward a return to revenue growth this quarter", said CFO NED SEGAL. This compares with a quarterly non-GAAP net income of $61 million, or $0.09 per diluted share in the same period previous year. The microblogging service added 4 million true MAUs last quarter. Revenue from data licensing and other sources was $87 million in the third quarter, up 22 percent from a year earlier, Twitter said, adding that it signed "a significant number of new enterprise deals" in the quarter. Total advertising revenue was $503 million, a decrease of 8% year-over-year.

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