Twitter reported user growth and revenue that beat analysts’ estimates, as the company works to turn itself around after a failed sale process.
Twitter’s third-quarter revenue increased 8 percent to $616 million, compared with 58 percent growth to $569 million a year earlier. Analysts estimated $605 million. The company reported 317 million monthly active users, beating analysts’ average estimate of 315 million. To address shortfalls in its business, the company announced it would cut 9 percent of its workforce.
The report comes as Twitter is in limbo over its future. The company explored selling itself at the end of last quarter, but all three potential suitors — Salesforce.com Inc., The Walt Disney Co. and Google — ultimately decided not to bid, people familiar with the matter have said.
Now Chief Executive Officer Jack Dorsey has to show he has a plan to turn around the company on his own, either by capitalizing on a new live-video strategy and other product updates, or by seeking out other interested acquirers.
Twitter jumped 3.4 percent to $17.85 in premarket trading. The stock has lost 25 percent of its value so far this year through Wednesday, compared with a 12 percent increase in the Russell 1000 Technology Index.
Featured Image: AP
(c) 2016, Bloomberg ยท Sarah Frier
