Twitter beats Wall Street estimates as growth moves overseas

Twitter Inc reported its second profitable quarter on Wednesday and topped Wall Street estimates for revenue and monthly active users, as advertisers in Asia and other markets outside the United States embraced Twitter's video ads.

San Francisco-based Twitter has tried to grow its user base and ad business internationally, expanding beyond its home country. U.S. President Donald Trump has kept the service in the headlines domestically but growth has been faster abroad, including a boost in Asia in the most recent quarter.

International sales accounted for 48 percent of revenue, growing 53 percent year-over-year, compared with 2 percent in the United States. Total revenue rose 21 percent.

Still, the social media sector is under intense pressure from lawmakers around the globe for inflaming political debates, allowing abusive language and failing to safeguard personal data.

While there have been few signs that users have abandoned social media, the companies face rising costs in the face of new regulation and to avoid abuse and misuse of their sites.

Twitter said it expected to grow headcount 10 percent to 15 percent in 2018, hiring people to improve the “health” of discussions on Twitter and meet other priorities.

Revenue growth for the remainder of 2018 will be similar to the slower rates of 2016, the company said, adding that second-half growth would face difficult comparisons to a strong performance in late 2017.

Up to Tuesday's close, Twitter shares had risen 26.9 percent this year, compared with a 1.5 percent decline in the S&P 500 Index. The fourth quarter of last year was Twitter's first profitable one, and the company reiterated that it expects to be profitable for the full year in 2018.

First-quarter expenses not including stock-based compensation rose 10 percent. Twitter has been cutting stock-based compensation, and total expenses were flat as a result.

The company said it saw a $21 million tax benefit from a U.S. tax overhaul carried out last year by Trump and U.S. Republican lawmakers.