Twitter share price rockets after user growth returns - and it's close to profitability for the first time

Lynsey Barber
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Shares in Twitter have rocketed in pre-market trading on the back of a return to user growth, up more than eight per cent - and it even predicted that it is nearing profitability for the first time.

The figures

Twitter added 4m new monthly active users in the third quarter - much better than the zero it added in the previous period - hitting 330m.

Daily active users were also up by 14 per cent, though, it does not disclose the total number.

Revenue was down four per cent on the same time last year to $590m, while the $503m of that which came from advertising fell by eight per cent.

Revenue from data licensing and other unspecified parts of the businesses grew by 22 per cent, however, that only stands at $87m.

Revenue in the US fell at a faster rate of 11 per cent to $332m, compared to the rest of the world, which declined six per cent to $258m.

But it reduced losses to $21m, a decline of 79 per cent on last year.

Why it's interesting

Twitter appears to have redeemed itself from a year ago when it was considering selling itself amid slowed growth.

Chief executive Jack Dorsey's turnaround plan appears to be paying off as it returns to growth and in it's even predicted that it will make a profit for the first time in its outlook for the fourth quarter.

Twitter did however adjust the number of users in the last quarter that it had said was 328m - it now says that was actually 326m, which actually changes reports of zero growth for the quarter back in July to a decline of 2m. The 4m increase in users takes overall numbers to

"We discovered that since the fourth quarter of 2014 we had included users of certain third-party applications as Twitter MAUs that should not have been considered MAUs," it explained.

"These third-party applications used Digits, a software development kit of our now-divested Fabric platform, that allowed third-party applications to send authentication messages via SMS through our systems, which did not relate to activity on the Twitter platform."

It now says the issue was first there in the fourth quarter of 2016, and has made adjustments for it and the following quarters.

That quarter was actually 318m, 1m fewer than previously reported. In the first quarter of 2017, adjusted numbers were 327m, 2m fewer.