You can be on Entrepreneur’s cover!

Twitter Posts Surprise Profit as User Growth Surges The social-media company saw a 24 percent jump in monthly average users in the second quarter.

By CNBC Staff

entrepreneur daily

This story originally appeared on CNBC

Twitter jumped sharply on Tuesday after the social media company easily topped earnings and revenue expectations.

The firm posted earnings of 2 cents a share, ex-items, compared to a loss of 12 cents a share, ex-items, in the year-ago period. The company also reported a revenue of $312 million, an increase of 124 percent year-over-year. Shares popped following the earnings report.

Monthly average users grew 24 percent year-over-year to 271 million, as of June 30, 2014, the firm said in a release.

Ad revenue increased 129 percent year-over-year, to a total of $277 million, of which 81 percent came from mobile advertising.

Other social media companies such as Facebook and LinkedIn edged higher following the report. Chinese microblog Weibo jumped 4 percent.

The company added that it expects to post sales of between $ 1.31 billion and $1.33 billion in its fiscal full year, beating Wall Street expectations.

"The differential you're seeing in the raised guidance is due to the success that we've had over the course of the beginning of the year and our view of how that success will translate into the back half of the year," said Dick Costolo, CEO of Twitter, on CNBC's Closing Bell.

Analysts had expected Twitter to report a loss of 1 cent per share on $283 million in revenue, according to a consensus estimate from Thomson Reuters.

Read More: I don't see bubble in social media stocks: Cuban

Since going public in November, Twitter shares have been volatile, peaking around $74 at the end of last year. Twitter faced some pressure on this quarter's earnings announcement after social media rival Facebook posted huge numbers last week, seeing its stock jump 20 percent as a result.

User growth remains one of the key issues for Twitter—its monthly average growth slowed to 25 percent last quarter, and some analysts expect that trend to continue.

Read More: Twitter CEO, the Internet has questions for you

"We have a very clear set of goals that we are looking to achieve and they are all base on the core characteristics that make Twitter the world's real time information network—that we're public, that we're real-time that we're conversational, that we're widely distributed," Costolo said. "Our goal is to have the largest total audience in the world and reach every person on the planet. That's our goal. Nothing less than that."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

I Designed My Dream Home For Free With an AI Architect — Here's How It Works

The AI architect, Vitruvius, created three designs in minutes, complete with floor plans and pictures of the inside and outside of the house.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Making a Change

Learn to Play Guitar Even if You Have No Previous Training for Just $20

Start with the beginner's crash course and learn how to play guitar in no time.

Business News

This Fan-Favorite Masters 2024 Item Is Still $1.50 as Tournament Menu Appears Unscathed by Inflation

The pimento cheese sandwich is a tradition almost as big as the tournament itself.

Marketing

Save Big and Get This Pro Collage App for $39.99

Edit, adjust, and create collages in seconds.