Twitter share price jumps four per cent before the bell as social network's revenue and earnings beat expectations

 
Caitlin Morrison
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Twitter beat analyst predictions in the third quarter (Source: Getty)

Twitter's share price jumped by more than four per cent in pre-market trading today as the micro-blogging site announced revenue and earnings for the third quarter had beaten expectations.

The figures

Revenue came in at $616m (£503m) for the three months to 30 September, an eight per cent increase on this time last year and ahead of analysts' expectations of $605.8m.

Earnings per share rose to $0.13 from £0.10.

The company also reported an improvement in user numbers, which rose to 317m from 307m in the third quarter of 2015 - an increase of three per cent.

The tech firm's stock was up 4.22 per cent in out of hours trading at pixel time.

Why it's interesting

Twitter has been all over the place in recent months - the group's stock has shot up and plunged back down as takeover rumours swirled around the company.

The group also confirmed today that it is reducing its workforce by nine per cent.

"The restructuring, which focuses primarily on reorganising our sales, partnerships and marketing efforts, is intended to create greater efficiency as we move toward our goal of driving toward... profitability in 2017," Twitter said in its results statement.

What Twitter said

“Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” said chief executive Jack Dorsey.

“We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”

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