But amidst this controversy, and Twitter's attempts to respond in an effective way, the company actually made money for the first time in the last quarter of 2017. There were more than 1,140 live-streamed events on Twitter during its fourth quarter, and 22 new partnerships, according to Twitter's letter to shareholders. The number of monthly average users remained flat quarter-over-quarter, which was lower than analysts had expected and which Twitter attributed to a change to Safari's third-party app integration and the company's own efforts to reduce spam, malicious automation and fake accounts, problems that have taken on new urgency for Twitter as it has became clear how Russian-linked accounts influenced content on the platform around the 2016 US presidential election. Previously in the second quarter, the company claimed that it had lose around a million users from its platform.
Average monthly active users' (MAUs) base was 330 million for the quarter - a flat quarter-over-quarter growth and up four per cent YoY.
Shares traded at $33.70 pre-market and were set to open at their highest level since July 2015.
Twitter outperformed during the fourth quarter on news of its first quarterly profit.
Profitability isn't the only good news for Twitter this quarter: its revenue also started growing again, rising to $732 million, up 2 percent from $717 million this time in 2016. Their projections for the Next Quarter growth is 28.6 percent.
"Q4 was a strong finish to the year", Dorsey said in a statement.
The company also continued a push to grow its non-advertising revenue.
"I'm proud of the steady progress we made in 2017, and confident in our path ahead", he added. The 280 character limit increase that Twitter enacted may have had something to do with users coming back to the platform more often and being more active. "O$3 wned-and-operated (O&O) advertising revenue increasing 7% year-over-year, reflecting better-than-expected growth across all major products and geographies".
According to Twitter, a change Apple made to the Safari browser's third-party app integration resulted in a loss of approximately 2 million MAUs in Q4 (1 million in the US and 1 million internationally). Hence the difference between Predicted EPS and Actual EPS reported is $0.03/share which shows an Earnings Surprise of 42.9 Percent.
Twitter, like Facebook, has also been under pressure to do more to combat misinformation, fake accounts, hate speech and harassment.
Twitter stock has now climbed 30% in 2017 and 67% year over year.
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