Twitter shares take off on better-than-expected numbers

Twitter posted better-than-expected revenues on Thursday as it continued a crack down on "spammy and suspicious" accounts, sending its shares soaring.

Third-quarter revenues at the messaging platform were $758m, an increase of 29% on the same period a year ago, boosted by strong advertising sales. Adjusted earnings before interest, tax, deductibles and amortisation were $295m, compared to $207m in 2017.

Average daily users increased 9% year-on-year, although that was less than the 11% increase recorded in the previous quarter. Average monthly active users (MAU) were 326m, down on the 330m seen in the third quarter of 2017 and on the 335m recorded in the previous quarter.

Twitter attributed the decline to a number of factors, including the introduction of GDPR and a reduction in automated usage. A technical issue also temporarily reduced the number of notifications sent.

Founder and chief executive Jack Dorsey said: “We’re achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service. We’re doing a better job detecting and removing spammy and suspicious accounts at sign up.

“This quarter’s strong results prove we can prioritise the long-term health of Twitter while growing the number of people who participate in public conversation.”

Shares in San Francisco-based business jumped in early morning trading in New York, ahead 17% at $32.

Neg Segal, chief financial officer, said the results “reflect our success with advertisers, delivering revenue growth of 29% and better-than-expected growth across most products and geographies”.

The group is now expecting adjusted EBITDA for the fourth quarter of between $320m and $340m.