Twitter Inc. (NYSE: TWTR) reported its fourth quarter and full year financial results for fiscal year 2017. The social media company reported its first quarter of net profit gains, as shares skyrocketed 26 percent during Thursday’s pre-market hours.
For the fourth quarter, Twitter reported revenue of $732 million, increasing 2 percent year over year, and beating analysts’ estimates of $686.1 million. The company reported an EPS of $0.19, increasing from the previous year’s same quarter of $0.11, and beating analysts’ estimates of $0.05.
On a GAAP-basis, Twitter reported net income of $91 million, representing a GAAP net margin of 12 percent compared to the same period last year of $167 million net loss on a GAAP net margin of -23 percent.
In the quarter, Twitter had reported an average monthly active users of 330 million, flat quarter over quarter, but gaining 4 percent year over year. The company had also beat analysts’ estimates of 332.5 million monthly active users. Daily active users grew 12 percent year over year, marking a fifth consecutive quarter of double digit.
“Q4 was a strong finish to the year,” said Jack Dorsey, Twitter CEO. “We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit DAU growth.”
For the full year, Twitter reported revenue of $2.4 billion, decreasing 3 percent year over year.
“We’re pleased with our performance in 2017 and our return to revenue growth in the fourth quarter,” said Ned Segal, Twitter CFO, “Driven by continued strong engagement growth, improvements in our revenue products, improved return for advertisers, and better sales execution. We achieved record GAAP net margins and our long-term target adjusted EBITDA margin range in the quarter, reflecting our continued prioritization and disciplined execution.”
For the first quarter of 2018, Twitter expects an adjusted EBITDA to be between $185 million and $205 million on a margin between 33 percent and 34 percent. For the full year, the company expects capital expenditures to be in the range of $375 million and $450 million.
Twitter says 2018 will be a year focusing around internal improvements to better its platform. The company says investments will diverted to the social media platform to help prevent against spam or bot accounts and narrowing down malicious or false content.