Twitter Surpasses Wall Street Expectations; It Will Cut Jobs To Increase Profitability

Although Twitter Inc’s quarterly revenue growth slowed sharply in the third quarter, it did still top analysts’ expectations.

The company said it would cut 9 per cent of its global workforce. The downsizing could hurt the company’s image.

Twitter’s shares rose nearly 4 per cent to $17.97 in pre-market trading. The micro-blogging website has been struggling to attract new users amidst competition from rivals like Instagram and Snapchat.

The company reported a 20 per cent increase in revenue in the previous quarter and 58 per cent in 2015. It said its user base ticked up 3 per cent to 317 million average monthly active users in the third quarter, from 313 million in the second quarter.

Twitter’s net loss narrowed to $102.9 million, or 15 cents per share, in the third quarter, which ended in 30 September, from $131.7 million, or 20 cents per share, a year earlier.