Earnings Results: Twitter stock gains after first $1 billion revenue quarter, big user-growth beat

Twitter Inc. cracked $1 billion in quarterly revenue for the first time this holiday season, topping expectations, though the social-media company’s profit came up short.

Shares were up 4.8% in premarket trading Thursday.

The company reported net income of $119 million, or 15 cents a share, down from $255 million, or 33 cents a share, in the year-earlier quarter. Adjusted earnings per share came in at 25 cents, compared with 31 cents a year prior. The FactSet consensus was calling for 29 cents.

Twitter’s TWTR, -1.68% revenue for the quarter totaled $1.01 billion, which beat the FactSet consensus forecast of $992 million. A year prior, Twitter reported $909 million in revenue.

The social media company added 7 million monetizable daily active users (mDAUs) users on a sequential basis during the period, bringing its total count up to 152 million. The FactSet consensus was calling for 2 million net new additions.

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The results from Twitter come as fellow advertising-driven companies Facebook Inc., Alphabet Inc., and Snap Inc. saw disappointing ad spending in the fourth quarter, which was partly attributed to a shorter window for holiday shopping last year compared with the year before. Twitter’s stock fell 1.7% in Wednesday’s session following numbers from Snap Inc., the latest of Twitter’s internet peers to post results.

For the first quarter, Twitter expects $825 million to $885 million in revenue, while the FactSet consensus called for $873 million.

Twitter shares have added 11% over the past three months, as the S&P 500 SPX, +1.13% has ticked up about 8%.