Twitter Inc. shares (TWTR) are up more than 26% on Wednesday’s premarket trading after the online messaging service reported second-quarter earnings results that blew away Wall Street’s forecasts. Quarterly revenue surged 124 percent to $312 million, exceeding expectations for $283.07 million. Active monthly users jumped to 271 million, up from 255 million in the first quarter of 2014. That’s an increase of 24% on a year-over-year basis. Analysts had expected 267 million active members.
Amid all this, the company posted non-GAAP net income of 2 cents a share, reversing a loss of 12 cents a share a year earlier. The street had expected Twitter to lose a penny per share.
“Our strong financial and operating results for the second quarter show the continued momentum of our business,” said Twitter CEO Dick Costolo in a statement accompanying the earnings. “We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter’s appeal to an even broader audience.”
Looking ahead, Twitter expects revenue for the third quarter of 2014 to come in between $330 million and $340 million, exceeding analysts’ average estimate of $323.1 million. The company also raised its full-year sales forecast to $1.31 billion to $1.33 billion, up from an April projection of $1.2 billion to $1.25 billion. Strong guidance.
In today’s premarket session/ 5:57 a.m. ET, the equity is 26.20% higher, changing hands at $48.70 a share.
TWTR’s almost 30% spike marks its largest intraday gain. The jump added almost $7 billion to its market cap.