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Twitter Surprises With Upbeat Earnings, But Announces Job Cuts

Image: A Twitter banner hangs outside the New York Stock Exchange
A banner with the logo of Twitter hangs on the front of the New York Stock Exchange. EMMANUEL DUNAND / AFP - Getty Images, file

Twitter on Thursday reported quarterly earnings and revenue that topped analysts' expectations.

The social media giant posted third-quarter adjusted earnings of 13 cents per share on revenue of $616 million.

Analysts expected the company to post earnings of 9 cents per share on $606 million in revenue, according to a Thomson Reuters consensus estimate.

Twitter announced job cuts of about 9 percent of its global workforce as part of a restructuring.

The company said it's focused on reorganizing the company's sales, partnerships and marketing efforts, in order to help Twitter achieve GAAP profitability in 2017. The company posted a quarterly GAAP net loss of $103 million, or 15 cents per share.

The social media company was said to be courted by several companies who were reportedly interested in buying it last month, although no formal bids were made.

Twitter's average monthly active users for the three-month period increased to 317 million, up 4 million from its second quarter.

The company also saw a 7 percent increase in its number of daily active users.

Twitter delved into livestreaming recently, through deals with the National Football League to show Thursday Night Football games and with Bloomberg to broadcast the first presidential debate. The company includes options to add short ads before and during the video or stream.

Last quarter, Twitter reported $535 million in total advertising revenue, with mobile advertising responsible for 89 percent of that figure.