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Twitter Reports Q3 Total Revenue Of $616 Million, Reveals Plan To Lay Off 350 Employees

Twitter is showing promising numbers for its shareholders, as the company revealed its Q3 earnings report on Thursday, before the stock trading began.

Despite pessimistic estimations from analysts, the social media platform registered more than $600 million in total revenue.

Shares Surge Following Earnings Report

As a result of the earnings report, Twitter's shares surged by 3 percent during pre-market trade. The report showed earnings of 13 cents per share, with a total revenue of $616 million.

Twitter aims to reach GAAP profitability in the next year, and has announced a solid restructuring process to accomplish that. It will focus on the reorganization of its sales, partnerships and marketing efforts. When looking at Q3 2016 GAAP, the Twitterverse banked a net loss of $103 million, meaning that it lost 15 cents on each share.

Jack Dorsey, Twitter CEO, explains that his company's strategy will expand audience reach, as well as engagement. An additional target for Twitter is to see significant year-over-year growth for daily active usage.

Before Thursday, experts with the Thomson Reuters estimated that Twitter had reached $606 million in revenue, counting for earnings of 9 cents per share.

New Twitter Users

According to the report, the platform attracted 4 million new users more than it did during Q2 2016. Twitter has averaged about 317 million monthly active users.

Another promising aspect is that the company saw its daily active user numbers increase by 7 percent in the third quarter.

The enterprise states that a number of tech names showed interest in a takeover, but no official offers were discussed. However, Twitter kept mum on the names of the said companies.

The social network recently inked a deal with the National Football League to exclusively stream Thursday Night Football matches. It also signed a partnership with Bloomberg to stream the first presidential debate. The company rounds up its revenue by placing short adverts before and during the video or stream.

Twitter's total revenue from advertising is $545 million, $10 million higher than the revenue from ads in Q2 2016, and a 6 percent boost when looking at Q3 2015. Of that figure, 90 percent came from mobile advertising.

Along with the company's Q3 earnings, Twitter confirmed rumors about its intention to axe 9 percent of its workforce. This means that about 350 people will be left without a job as part of a broader plan to cut costs and refocus the business into increased profitability.

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