Social networking service Twitter is growing steady as its earnings for the second fiscal quarter beat analysts' estimates with shares that surged 31 percent high in after-hours trading.

The company reported a revenue of US$312.2 million and earnings per share of US$0.02. It was up 124 percent from total revenue of US$139.3 million last year.

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Wall Street had estimated Twitter to drop one cent per share on revenue of US$283.07 million.

The company has also reached a 24 percent year-over-year growth with 271 million active members from its 255 million tally in the first quarter of the fiscal year 2014.  

Chief Executive Officer Dick Costolo said that the company's financial and operating results for the quarter show the continued momentum of the business. He added that Twitter remains engaged for the increase of user growth by developing new products and experiences that will extend its appeal to a broader audience.

The microblogging site is keeping its effort to attract new members after two consecutive quarters of decelerating user growth.

The decline came when Costolo responded on the concerns expressed by the investors about Twitter's sagging sales growth during its initial public offering in November.

The CEO gutted the company's executive ranks and replaced his chief financial officer and his operating chief.

The stock has dropped 47 percent from US$73.31in Dec. 26 since then on concerns that Twitter is not earning enough to meet its expenses as it is among the most expensive technology-based companies on the projected 2014 sales.

The company has widened its losses to US$144.6 million from US$42 million in 2013. However, it had recorded a profit of two cents per share that is higher than last year's loss of 12 cents per share, excluding expenses such as stock-based compensation.

Looking ahead, Twitter estimates revenue for the next quarter of 2014 to come within the range of US$330 million to US$340 million.

TagsChief Executive Officer Dick Costolo