Twitter’s user growth had flatlined since the first quarter of 2015, a change after the company underwent rapid user growth from 2010 through 2015, according to data from Statista.
Flat user growth has been negative for Twitter’s financial results, but now there are signs of life, at least according to the social media company’s latest quarterly results.
Twitter reported its second profitable quarter on Wednesday and the company also surpassed analysts’ estimates on revenue and active monthly users. This came as advertisers in markets outside of the United States.
Twitter’s revenue rose to $664.9 million, above the $607.6 million analysts were expecting. The company swung to a net profit of 8 cents per share. Excluding one-time gains and losses, the company earned 16 cents per share, topping analysts’ consensus forecast for 8 cents.
The number of active monthly Twitter users rose to 336 million, up 3% from a year earlier and above the estimate of 334 million from FactSet.
Elon Musk, is one of these users. He removed Tesla and SpaceX’s Facebook pages after the data access scandal. His personal account on Twitter is still active.
But, while Twitter’s latest results were positive, the company cautioned that revenue growth for the remainder of 2018 will be similar to the slower rates of 2016, noting that second-half growth would face difficult comparisons to a strong performance in late 2017.