But Twitter lost $132 million, extending the company’s uninterrupted string of losses since Dorsey co-founded the service almost a decade ago.
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The micro-blogging website expects its revenue to be between $695 million to $710 million for the fourth quarter, falling below analysts’ estimates of $739.69 million. Mobile MAUs represented approximately 80 per cent of total MAUs.
The social network finished the quarter with 307 million active users, an increase of three million from June, and just two million total users in the previous quarter.
Twitter’s turnaround evidently has not begun yet. The disappointment was compounded by the fact that analysts had forecast user numbers reaching 324 million. Company’s shares had crashed at the opening trade, falling by almost 13%, but trimmed their losses with a Wall Street rally.
Things weren’t looking too promising on Tuesday as Twitter’s stock took a 10 percent dive in after hours trading immediately following the release.
Jack Dorsey has returned as Twitter’s CEO after seven years since he was ousted.
As interim CEO in the prior quarter, he delivered a downbeat view of Twitter’s earnings and criticized its product lineup.
Twitter said Dorsey’s shares will be earmarked for stock issued to employees next year under the company’s incentive plan. “Non-users continue to ask, ‘Why should I use Twitter?'” Noto said at the time.
Company executives gave no reason for lowering the forecast.
Excluding certain expenses, the company earned 10 cents per share.
“Twitter is more of a business-y play”.
Twitter became a popular tool for companies to handle customer service early in its existence, but it is now facing competition from Facebook’s Messenger service, which also aspires to be the main gateway through which consumers and companies resolve issues.
For the third fiscal quarter, both Twitter’s revenue and EPS were ahead of estimates.
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CEO Jack Dorsey touted the newly-launched Moments for making it easier to understand the Twitter product as well as making it more accessible to non-users. Twitter has spent a long time trying to attract potential users with new goodies – the Moments tab, Periscope, Vine, and new ways of using embedded tweets – but the constantly updating stream of words beloved by many Twitter obsessives has not proven very palatable for mainstream users.
