Twitter reports slight rise in users, $132M loss in quarter

The company projected its revenue will range from $695 million to $710 million in the current quarter, which ends in December.

In other words… despite slow user growth, Twitter‘s third-quarter revenue managed to increase 58 per cent over previous year.

Revenue from the U.S., Twitter’s largest market, increased 54 per cent from a year earlier to $370 million.

Twitter CEO, Jack Dorsey, announced that he will be giving a third of his company stock to the employee equity pool.

Twitter shares slumped to $US27.20 in extended trading, after rising 1.5 per cent to $US31.34 at the close in New York. Even more, management implied during the earnings call that the third month of the fourth quarter could potentially come in much higher than Twitter’s guidance implies, but because of the difficulty in predicting the volatile quarter, management exercised conservatism. When the company went public in 2013, revenue from mobile contributed just 65% of its revenue, and it had 75% of its users on mobile devices at that time.

Dorsey explained how the company is building teams with new leads around its core products, including Twitter, Periscope and Vine. However, with these latest financials encompassing the Twitter co-founder’s first full quarter in charge, investors hoping the company can emulate Facebook’s success appear to have a long wait ahead of them.

Excluding common business expenses such as stock compensation, taxes and depreciation – a measure called adjusted Ebitda that the company prefers to highlight – Twitter reported a profit of $142 million compared with $68 million a year ago. Twitter exceeded 100,000 numbers in active advertisers within the 3rd quarter and started earning cash from logged out customers, or these who do not have accounts but visit the website, he observed. Dorsey served briefly as Twitter’s CEO in 2008 before he was removed.

According to The Guardian, Twitter is going to try ancient, forgotten ways to try and find new users – it plans on running TV ads during the World Series, starting tonight. That’s below the 324 million that Wall Street was expecting and it represents only 4 million new average MAUs since last quarter.

Shares of Twitter has fallen about 36 percent in the last 12 months.

“It’s early, and we’re still collecting feedback but we have seen how Moments improves Twitter”.