Twitter's revenue for the second quarter, at $312 million, represents an increase of 124 percent compared to the corresponding quarter last year.

The social network's earnings was estimated to rise to $283 million, but the company's second quarter revenue far exceeded expectations.

"Surprise surprise, Twitter had a great quarter," said eMarketer analyst Debra Aho Williamson.

"Nobody was expecting it. They really outperformed in just about every metric that we can see," Williamson said. "They've answered a lot of questions."

The price of the shares of Twitter increased by 38 percent to $52.28 in after-hours trading after news on the company's earnings was posted. At the close of the market, the price of the shares was at $38.60.

Twitter also reported earnings per share of two cents, also beating the estimates of analysts that the company will post a loss of one cent per share.

The surge in revenue for Twitter is on the back of the active members of the network reaching 271 million, which represents a 24 percent increase compared to the same quarter last year and a 25 percent increase compared to the first quarter of this year. Twitter's number of active users also exceeded the estimates of analysts, which expected the number to rise to only 267 million users.

Twitter is being able to maintain the growth of its number of users after two consecutive quarters of decelerating growth. The slowdown came right after the initial public offering of Twitter held last November, which raised concerns among investors that the company will continue to post slow sales growth.

From the record $73.31 share price of the company in Dec. 26 of last year, the price plunged by as much as 47 percent. 

In response to the company's sudden decline, Twitter CEO Dick Costolo replaced several executives within the company, including the CFO and COO. 

Costolo's moves seem to be paying off, as Twitter looks to be in the upswing.

"People who were negative on the company and on the stock now have reason to reconsider and re-evaluate," said S&P Capital IQ analyst Scott Kessler. "Twitter has momentum in its business." 

One of the factors driving the momentum of Twitter is the increased usage that the social network is enjoying, with users viewing their timelines 173 billion times in the quarter, compared to only 157 billion in the previous quarter.

Twitter also reported that mobile advertising made up 81 percent of the total advertising revenue of the company in the second quarter. International revenue more than doubled, which made up about a third of the company's total sales.

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