Shares on Twitter recorded the biggest gain one day after advertising sales skyrocketed

Shares of Twitter Inc. climbed 22 percent on Thursday, allowing them to make their biggest gain in a day, as the social media company easily beat Wall Street's earnings and earnings forecasts by selling more shares. even if it had lost users of fake accounts.

The increase in the number of shares was down 19% three months ago when Twitter shocked Wall Street with a similar drop in the number of users. This time, investors have welcomed the removal of Twitter accounts used for misinformation, hate speech and other abuses as the best way to consolidate a high quality and attractive user base for advertisers.

"If they get rid of robots, fake accounts and fight against hate speech, it's really good for the health of the platform in general," said Brian Wieser, badyst at Pivotal Research. Group. "It's certainly more attractive to advertisers."

Twitter's advertising revenues jumped 29% to $ 650 million in the third quarter from the previous year, thanks to sales of ads by media companies such as Live Nation Entertainment, Major League Baseball and Major League Soccer.

According to Refinitiv data, total revenues increased by $ 758 million over the previous year, compared to an average of $ 702.6 million by badysts.

The company announced an adjusted profit of 21 cents per share, well above the average estimate of 14 cents.

TWEET PURGE

Twitter has removed millions of suspicious accounts after its use and other social media services have been used in misinformation campaigns to try to influence voters during the 2016 US presidential race and Other elections. Last week, he revealed he had removed some 10 million tweets which, he said, were the result of influence operations supported by the Russian and Iranian governments.

During a conference call Thursday, Twitter said the clean-up efforts launched in March and dubbed "initiative" in the field of "health" will allow it to increase its revenue faster than users during a extended period.

"Health is ultimately a growth driver for the service, and we believe that it is important not only for the overall experience, but also to make Twitter sustainable in the long run," said during the meeting. # 39; call.

Neither Dorsey nor Chief Financial Officer Ned Segal clearly answered questions from badysts at a call after the results on how Twitter would ultimately reverse the decline of users.

According to FactSet, monthly active users fell to 326 million euros in the third quarter, which is below badysts' average forecast of 331.5 million. Twitter said it expects them to fall below the 326 million mark during the current quarter, exceeding the average forecast of 333.4 million.

The use of Twitter has stagnated for over a year, which has led some badysts to fear that growth has reached its peak.

Twitter "has done a great job in explaining the monthly decline of active users, which saves them time, but the action will be under pressure if the MAU does not start growing again in 2019," said Michael Pachter , Managing Director of equity research at Wedbush. Securities.

GA GA

These concerns have been somewhat offset by the increase in video advertising sales which suggests that the company manages to generate more money from each user and that investors are looking for strong evidence that this would lead to sustainable growth in revenues and revenues. profits.

"Twitter continues to" do a lot with a little. "The growth in the number of users is dull, but the company is demanding more from current users," said Jim Cridlin, Global Head of Innovation for the Purchasing Firm. of WPs Mindshare Media.

Distribution contracts with Major League Baseball, video game publisher Activision, Sony Music and Vice are beginning to attract advertisers to Twitter's premium video, he said.

Twitter said the number of daily active users was up 9 percent year-over-year, down from the 11 percent jump in the previous quarter and its slowest two-year growth rate. The company does not disclose the total number of daily users.

Twitter shares rose 17% to $ 32.05 in the morning. They are still down about 42% from the peak of $ 47.79 in June, the highest in three and a half years.