Twitter had to wait for more than a decade, but now it is reaping its profits.
The net income for the company is stated to be $789 million for this quarter. Though $683 million of this amount is due to an allowance of deferred asset tax valuation, it still has $758 million as revenue. This is a far better performance than expected.
It is the fourth straight quarter that has been profitable for Twitter. However, the profits for the previous quarters were just about $1 billion. Prior to the profitable quarters, the loss was about $367 million for Twitter.
As Twitter was facing issues related to user growth in the company, profits were a bit slow in coming. But for this quarter, the adjusted earnings are up by 39 percent, when compared year on year, which is a $295 million adjusted earnings for Twitter.
CEO Jack Dorsey says, “It is meaningful progress at Twitter, which provides a healthy and valuable everyday service, by removing suspicious accounts at sign-up and detecting such spams early, for better health”
The monthly user count has however taken a hit through this crackdown on spams and bots on its platform. The monthly user base which was 335 million has come down to 326 million when compared with the previous quarter. It is the second quarterly decline in a row on quarterly user data, as the company concentrates on healthy users.
New verification requirements have been added on Twitter. This has resulted in a 20 percent drop in new signups when compared to the previous quarter. However, the daily active users on Twitter are growing steadily.
Though Twitter does not give specifications of its audience growth, the company continues to specify that it is growing which is a sign of improvement.
The Twitter stock saw an increase of 13 percent, ahead of market trading hours.