Twitter (NYSE: TWTR) stock looked forward to a sparkling day Thursday after the company beat expectations on revenue and gave higher-than-expected guidance for the fourth quarter.
The company said in its guidance for next quarter that if it hit the high end of its adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) estimates of $220 million to $240 million, it could be profitable according to Generally Accepted Accounting Principles (GAAP)
Revenues came in at $590 million versus $586.7 million experts expected.
Earnings per Share (non-GAAP diluted) were 10 cents versus. six cents expected in the consensus estimate.
Monthly active users (MAUs) amounted to 330 million, slightly down from the 330.4 million projected by experts.
"This quarter we made progress in three key areas of our business: we grew our audience and engagement, made progress on a return to revenue growth, and achieved record profitability," CEO Jack Dorsey said in a statement.
Twitter reported its highest adjusted EBITDA in the third quarter, with total non-GAAP expenses down 10% year over year or 35% of total revenue. Total GAAP expenses of $582 million were down 16% from the quarter a year earlier.
Twitter also announced it had to readjust its monthly active users (MAUs) all the way back to the fourth quarter of 2014 because it had accidentally counted users of a third party app service as its own.
Twitter shares rocketed $1.92, or 11.2%, to $19.06 Thursday morning.
