Twitter posts first-ever profit, shares jump 22 percent

Longer messages, increased video inventory, and cleverer displays of messages all contributed to a sense of momentum at Twitter. Twitter previously said it would take action against Devumi's practices. However, this quarter, Twitter reversed that tide with a 28% reduction in expenses in Q4.

Twitter made money for the first time in its almost 12-year history, a milestone that satisfied investors in the short term but might not resolve the company's broader problems any time soon.

Revenue rose 2 percent year-over-year to $731.6 million, the first increase since the fourth quarter of 2016, beating Wall Street's target of $686.1 million, according to Thomson Reuters I/B/E/S. The site streamed 1,140 live events, and 60 percent of this content was streamed globally. Twitter argued the change would not make a significant negative impact, but would only allow people to tweet more freely in the rare moments when they needed more than 140 characters.

Twitter shares were up 18 percent this morning after the earnings report was released. While the company's difficulties adding users is a concern, monetization across both the USA and worldwide market has helped the company to report growth in profit.

Twitter (NYSE:TWTR) reported solid growth in revenues in Q4, and for the first time in its history the company achieved GAAP profitability as net income rose to $91 million. It had 330 million monthly active users for the quarter, effectively failing to grow its audience at all. The news pushed its shares up 12 percent despite a brutal day for the overall stock market.

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The number of Twitter's daily active users, though, grew 12 percent in the fourth quarter compared with the same period in 2016, but the company does not disclose the total number. Those earlier reports mistakenly included users who accessed Twitter through third-party apps.

The social media stalwart is also dealing with the fallout of a New York Times investigation which found that a company called Devumi had sold millions of fake followers to celebrities, athletes and politicians.

To further restrict cases of sexual harassment, Twitter has vowed to conduct full account reviews whenever it receives tweet-level reports regarding nonconsensual nudity. New York Attorney General Eric Schneiderman has opened an investigation into Twitter and Devumi. Much of this was driven by worldwide increases, as its home territory of the United States declined 8%. However, Twitter still held onto 4 percent more users than it did at the same time previous year.

Twitter started enforcing new hate speech rules to cut down on this problem, suspending white nationalist groups and revoking the "verified" status of many members of the alt-right. The apparent project is attempting to purge the site of automated accounts that are created to spread "malicious activity". Noto, who is credited with contributing to Twitter's financial turnaround over the past year or so, is taking the CEO spot at Social Finance, a financial technology company.

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