Twitter Quarterly Earnings Beat Expectations, But User Numbers Drop

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Twitter on Thursday unveiled a third-quarter earnings report that beat analysts's expectations. 

The social media giant posted adjusted earnings of 21 cents per-share, compared to adjusted earnings of 10 cents per-share in the year-ago period.

That beat missed an analyst forecast of 14 cents a share in earnings for the latest financial quarter.

The San Francisco-based social media company also posted overall revenues rising of $758 million, which blew past an analyst forecast of $701 million.

The company's third-quarter ad sales, which comprise the bulk of Twitter's overall revenues, were $650 million, beating an analyst estimate of $593 million. Twitter said total ad engagements increased 50 percent year-over-year.

The latest revenue line also follows an earlier three consecutive quarters of revenue growth.

But Twitter's number of total monthly users, at 326 million for the quarter, was down 9 million during the latest three month period. That also fell short of an analyst forecast 330 million monthly active users.

"We're achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service," said Jack Dorsey, Twitter's CEO, in a statement. "We're doing a better job detecting and removing spammy and suspicious accounts at sign-up."

Twitter saw its daily active user (DAU) growth, a key metric for any social media company, rise by 9 percent.

The social messaging app has been trying to improve its user experience and keep people more engaged.

Stock in Twitter jumped by $3.48, or around 13 percent, to $30.90 in pre-market trading.

This article was originally published by The Hollywood Reporter.


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