Twitter, inc. announced a disappointing third quarter of financial results. The social media app reported a revenue of $616 million which outdid an estimated $605.5 million. This was, however, the smallest revenue gain for the app since announcing going public. Twitter has also experienced declininggrowths over the last ninequarters in revenue.
Twitter reported non-GAAP earnings of 13 cents of shares, which overshotestimates of 9 cents. Twitter reported a loss of 15 cents a share when their expenses were included and did not offer any guidance for the fourth quarter, claiming that there would be a reorganization of their sales force. Twitter shares also went up over five percent in pre market trading.
On top of its revenue shortcomings, Twitter also reportedthat growth among its monthly users is almost nonexistent. According to twitter, they had 317 million monthly active users in the third quarter. That is up three percent compared to 2015, but only up 1.2 percent compared to the second quarter of 2016.
Twitter employs 3,860 people. The nine percent announced cut of its total workforce amounts to approximately 350 people. The cut is being planned in order to refocus emphasis on organizing marketing, partnership and sales.
"We see a significant opportunity to increase growth as we continue to improve the core service," read a statement fromTwitter Chief Executive Officer, Jack Dorsey. "We have a clear plan, and we're making the necessary changes to ensure Twitter is positioned for long-term growth."