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Twitter Beats Estimates, To Cut 9% Of Its Workforce

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Twitter Beats Estimates, To Cut 9% Of Its Workforce
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Shares of Twitter Inc (NYSE: TWTR) were trading higher by more than 5 percent early Thursday morning after the company reported its third quarter results.

Twitter earned $0.13 per share on revenue of $616 million. Wall Street analysts were expecting the company to earn $0.09 per share on revenue of $605.8 million.

The company saw accelerating rates of growth on a year-over-year basis across daily active usage, Tweet impressions and time spent on the platform. The increase in activity was attributed to product improvements, organic growth and marking initiatives.

Total monthly active users (MAU) rose from 313 million in the second quarter to 317 million in the third quarter. Average U.S. MAUs rose from 66 million in the prior quarter to 67 million while average international MAUs rose from 247 million in the prior quarter to 250 million.

The company announced a restructuring and reduction in its workforce which will affect approximately 9 percent of its total global headcount.

The company noted that it will now be in a better position to fund its highest priorities and eliminate investments in non-core areas and achieve greater efficiency.

Finally, Twitter provided guidance for the full fiscal year and expects its Adjusted EBITDA to be in a range of $700 million to $715 million, Adjusted EBITDA margin on revenue to be 27.5 to 28 percent and capital expenditure to be no more than $360 million.

The stock traded recently at $18.02, up 4.4 percent in the pre-market session.

Posted-In: twitter Twitter Earnings Twitter International Twitter MAUEarnings News Guidance Movers Best of Benzinga

 

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