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The social
network has been struggling to sign up new users amid
competition from nimbler rivals such as Instagram and Snapchat.
Twitter's shares rose nearly 4 percent to $17.97 in premarket
trading on Thursday.
Revenue rose about 8 percent to $616 million, above the average
analyst estimate of $605.8 million. The company reported a 20
percent rise in revenue in the previous quarter and 58 percent
last year.
Excluding items, the company earned 13 cents per share, beating
the average analyst estimate of 9 cents, according to Thomson
Reuters I/B/E/S.
The microblogging service said its user base ticked up 3 percent
to 317 million average monthly active users in the third quarter
from 313 million in the second quarter.
Analysts on average had expected 316.3 million monthly active
users, according to market research firm FactSet StreetAccount.
Twitter had 3,860 employees globally as of June. The layoff
could hurt the company's image in San Francisco, where the
competition for engineering talent is fierce.
The company, led by co-founder Jack Dorsey, said it expected to
incur cash expenditures of about $10 million to $20 million in
the fourth quarter, mostly in severance costs.
"We're getting more disciplined about how we invest in the
business, and we set a company goal of driving toward GAAP
profitability in 2017," said Chief Financial Officer Anthony
Noto.
The company's net loss narrowed to $102.9 million, or 15 cents
per share, in the third quarter ended Sept. 30, from $131.7
million, or 20 cents per share, a year earlier.
(Reporting by Supantha Mukherjee and Anya George Tharakan in
Bengaluru; Editing by Saumyadeb Chakrabarty)
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