Twitter beats on revenue and earnings but confirms layoffs

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Twitter beat analysts' expectations for both revenue and earnings per share in its third quarter, but the company confirmed it plans to lay off 9% of its workforce as it looks to cut costs and work towards profitability in 2017.

The company posted an 8% lift in revenue to $616 million year-over-year and adjusted profit of $0.13 per share in the three months to September 30.

The platform's monthly active users grew 3% year-on-year to 317 million — up 4 million from last quarter.

But despite these gains, Twitter continues to be a loss-making company. It posted a GAAP net loss of $103 million, or $0.15 per share.

Check out the evolution of Twitter through the years:

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MANCHESTER, UNITED KINGDOM - JULY 02: In this photograph illustration a member of the social networking site Twitter follows the twitterings of friends during a work break on July 2, 2009 in Manchester, England. The social network site, started in 2006 in California as a sideline project, has grown into a global brand becoming one of the fastest growing phenomenas of the Internet. (Photo by Christopher Furlong/Getty Images)
LONDON - JULY 02: In this photo illustration the Twitter website is displayed on a laptop computer on July 2, 2009 in London. The social network site, started in 2006 in California as a sideline project, has grown into a global brand becoming one of the fastest growing phenomenas of the Internet. (Photo by Peter Macdiarmid/Getty Images)
LONDON - JULY 02: In this photo illustration the Twitter website is displayed on a mobile phone near Parliament on July 2, 2009 in London. The social network site, started in 2006 in California as a sideline project, has grown into a global brand becoming one of the fastest growing phenomenas of the Internet. (Photo by Peter Macdiarmid/Getty Images)
Twitter co-founder Biz Stone (L) and conference organizer Steve Broback (R) from the Parnussus Group, pose for photographers at the start of the Twitter Conference LA in Los Angeles on September 22, 2009. Twitter, the micro-blogging platform which has attracted tens of millions of users but has yet to make money, has changed its terms to potentially open up the free service to advertisers. Twitter, which allows users to pepper one another with messages of 140 characters or less, has seen explosive growth since it launched publicly in August 2006 but has been unable so far to generate revenue. AFP PHOTO/Mark RALSTON (Photo credit should read MARK RALSTON/AFP/Getty Images)
FILE - This Oct. 15, 2009 file photo shows a Japanese participant to Twitter Inc.'s special event launching a Japan-based mobile version of the popular microblogging service showing the Twitter page asking "what are you doing?" in Japanese on a mobile phone in Tokyo, Japan. (AP Photo/Koji Sasahara, File)
In this photo taken Thursday, May 12, 2011, Adorian Deck, a high school senior and creator of @OMGFacts, who claims social media mogul Emerson Spartz stole his idea, is seen in his home in Grass Valley, Calif. Deck said he created @OMGFacts in 2009 as a Twitter feed providing a steady stream of information, with an emphasis on celebrities, pop culture, history and commerce. Deck is suing Spatz in federal court claiming that Spartz took advantage of the inexperience of Deck and his mother, Marylou, who also signed the partnership agreement, to "misappropriate (Deck's) intellectual property and the fruits of his creative efforts."(AP Photo/Rich Pedroncelli)
Julie Strange, a 27-year-old librarian at Towson Library in Maryland, shows a Twitter message on her phone displaying information on how to donate to the Red Cross. (Photo by Amy Davis/Baltimore Sun/MCT via Getty Images)
In this June 29, 2010 photo, Twitter Inc. spokesman Sean Garrett smiles in an interview with the Associated Press during his visit to Tokyo. Garrett's company is hiring a Washington D.C. representative to promote Twitter's use in politics and hopes to expand that worldwide, he said. "Obviously there is a lot of potential for policymakers, government agencies, politicians of all stripes to use Twitter and to connect with their constituency," Garrett said. (AP Photo/Itsuo Inouye)
FILE - In this June 23, 2010 file photo, a Twitter sign hangs at the offices of Twitter Inc., in San Francisco. WikiLeaks said Saturday, Jan. 8, 2011 that U.S. investigators have gone to San Francisco-based Twitter Inc. to demand the private messages, contact information and other personal details of Julian Assange and three people associated with the secret-spilling website. The popular micro-blogging site has declined comment. (AP Photo/Jeff Chiu, File)
President Barack Obama sits with Twitter co-founder and Executive Chairman Jack Dorsey as he answers a tweet from House Speaker John Boehner of Ohio during a "Twitter Town Hall" in the East Room of the White House in Washington, Wednesday, July 6, 2011. (AP Photo/Charles Dharapak)
Specialist Glenn Carell, who will handle the Twitter IPO, works at his post on the floor of the New York Stock Exchange, Thursday, Nov. 7, 2013. Twitter set a price of $26 per share for its initial public offering on Wednesday evening and will begin trading Thursday under the ticker symbol "TWTR" in the most highly anticipated IPO since Facebook's 2012 debut. (AP Photo/Richard Drew)
Twitter signage is draped on the facade of the New York Stock Exchange, Thursday, Nov. 7, 2013 in New York. Twitter set a price of $26 per share for its initial public offering on Wednesday evening and will begin trading Thursday under the ticker symbol "TWTR" in the most highly anticipated IPO since Facebook's 2012 debut. (AP Photo/Mark Lennihan)
A screen shows the Twitter messages of users giving prayers for missing Malaysian airlines flight MH370 in Kuala Lumpur on March 28, 2013. Planes and ships were to resume the hunt for wreckage of flight MH370 after the weather cleared, as they chase down more satellite sightings of suspected debris nearly three weeks after the jet crashed. AFP PHOTO / Ed Jones (Photo credit should read ED JONES/AFP/Getty Images)
LONDON, ENGLAND - NOVEMBER 07: In this photo illustration, the Twitter logo and hashtag '#Ring!' is displayed on a mobile device as the company announced its initial public offering and debut on the New York Stock Exchange on November 7, 2013 in London, England. Twitter went public on the NYSE opening at USD 26 per share, valuing the company's worth at an estimated USD 18 billion. (Photo by Bethany Clarke/Getty Images)
SYDNEY, AUSTRALIA - NOVEMBER 26: (EXCLUSIVE COVERAGE) Katy Perry poses for a portrait backstage with the Twitter mirror at the 28th Annual ARIA Awards 2014 at the Star on November 26, 2014 in Sydney, Australia. (Photo by Mark Metcalfe/WireImage)
FILE - In this Tuesday, July 28, 2015, file photo, the logo for Twitter adorns a phone post on the floor of the New York Stock Exchange. The last week of July 2015 hasn’t been an easy week for social media stocks, despite double-digit revenue growth from Twitter, LinkedIn and Facebook. Investors are looking beyond headline earnings numbers to find reasons to sell stock. (AP Photo/Richard Drew, File)
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Jack Dorsey, Twitter CEO, said in the earnings release: "Our strategy is directly driving growth in audience and engagement, with acceleration in year-over-year growth for daily active usage, tweet impressions, and time spent for the second consecutive quarter."

He continued: "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."

Twitter confirmed previous reports that the company is looking to slim down its workforce again — a year after last initiated layoffs, eliminating 8% of staff. The headcount reduction this time will affect more than 300 staff (or 9% of its global workforce) within the company's sales, partnerships, and marketing teams. The sales division, for example, will be reorganized from three teams down to two.

See photos of Jack Dorsey, Twitter's CEO:

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Jack Dorsey, Twitter CEO
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Jack Dorsey, Twitter CEO
Jack Dorsey, interim chief executive officer and co-founder of Twitter Inc., left, talks with Venture capitalist Aviv 'Vivi' Nevo while arriving for a morning session during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, U.S., on Thursday, July 9, 2015. Billionaires, chief executive officers, and leaders from the technology, media, and finance industries gather this week at the Idaho mountain resort conference hosted by investment banking firm Allen & Co. Photographer: David Paul Morris/Bloomberg via Getty Images
SQUAWK ON THE STREET -- Pictured: Dick Costolo and Jack Dorsey in an interview at CNBC's San Francicso bureau, on June 12, 2015 -- (Photo by: John Chiala/CNBC/NBCU Photo Bank via Getty Images)
Jack Dorsey, CEO of Square, Chairman of Twitter and a founder of both ,holds an event in London on November 20, 2014, where he announced the launch of Square Register mobile application. The app, which is available on Apple and Android devises, will allow merchants to track sales, inventories and other data on smartphones and tablets. AFP PHOTO / JUSTIN TALLIS (Photo credit should read JUSTIN TALLIS/AFP/Getty Images)
Jack Dorsey, co-founder of Twitter Inc. and founder and chief executive officer of Square Inc., right, and Suzanne McKechnie Klahr, founder and chief executive officer of BUILD, stand for a photograph during the 2014 BUILD Gala in San Francisco, California, U.S., on Saturday, March 1, 2014. BUILD is an innovative, college preparatory program, whose mission is to use entrepreneurship to direct low-income high school students to college and careers. Photographer: David Paul Morris/Bloomberg via Getty Images
DETROIT, MI - Twitter Chairman and Square CEO Jack Dorsey moderates a panel discussion with Detroit entrepreneurs at Techonomy Detroit at Wayne State University September 17, 2013 in Detroit, Michigan. The topic of the discussion was 'Turbocharging Detroit's Teconomy.' (Photo by Bill Pugliano/Getty Images)
SAN FRANCISCO, CA - AUGUST 19: Square CEO Jack Dorsey (R) demonstrates the Square payment system for House Ways and Means Committee Chairman Dave Camp (R-MI) while touring the Square headquarters on August 19, 2013 in San Francisco, California. Senators Max Baucus (D-MT) and Dave Camp (R-MI) continued their Tax Reform Tour with a visit to the headquarters of mobile payment company Square. The tour is taking the two senators across the nation to speak to American people about how to fix the nation's broken tax code to benefit families and job creators. (Photo by Justin Sullivan/Getty Images)
Jack Dorsey, co-founder and chairman of Twitter Inc. and co-founder and chief executive officer of Square Inc., stands for a photo following an interview at Just Baked Cupcakes in Detroit, Michigan, U.S., on Tuesday, Sept. 17, 2013. Twitter Inc., which announced plans last week for an initial public offering, is still deciding whether to list on the New York Stock Exchange or Nasdaq Stock Market, setting off a horse race for the high-profile deal. Photographer: Jeff Kowalsky/Bloomberg via Getty Images
FILE - This April 24, 2013 file photo shows Twitter co-Founder Jack Dorsey at a campaign fundraiser for Democratic Candidate for Public Advocate Reshma Saujani in New York. Disney is adding Twitter Chairman and Square CEO Jack Dorsey to its board of directors. Walt Disney Co. says Dorsey is joining the board effective immediately. He will stand for election to a full term at the companyâs annual meeting on March 18. (AP Photo/Mary Altaffer, FIle)
Jack Dorsey, chairman and co-founder of Twitter Inc., center, speaks as New York City Mayor Michael 'Mike' Bloomberg, right, and San Francisco Mayor Edward 'Ed' Lee listen during a press conference in San Francisco, California, U.S., on Friday, June 14, 2013. Dorsey, Mayor Bloomberg and Mayor Lee announced today that they will co-host the second annual Bloomberg Technology Summit to be held in New York on September 30. Photographer: David Paul Morris/Bloomberg via Getty Images
Jack Dorsey, chairman and co-founder of Twitter Inc., speaks during a Bloomberg West Television interview in San Francisco, California, U.S., on Friday, May 17, 2013. Twitter is expanding into smartphones and other wireless products, seeking to boost the number of users and advertisers. Photographer: David Paul Morris/Bloomberg via Getty Images
NEW YORK, NY - APRIL 23: Creator of Twitter Jack Dorsey (R) attends the 2013 Time 100 Gala at Frederick P. Rose Hall, Jazz at Lincoln Center on April 23, 2013 in New York City. (Photo by Jennifer Graylock/Getty Images)
Jack Dorsey, Chairman of Twitter and CEO of Square speaks at a conference of the New Economy Summit 2013 in Tokyo on April 16, 2013. Entrepreneurs of information technology (IT) and online business on April 16 gathered at a one-day conference, hosted by Japan Association of New Economy (JANE), led by Japanese electronic commerce giant Rakuten's Hiroshi Mikitani. AFP PHOTO / Yoshikazu TSUNO (Photo credit should read YOSHIKAZU TSUNO/AFP/Getty Images)
Jack Dorsey, co-founder and chairman of Twitter Inc. and founder and chief executive officer of Square Inc., pauses while he speaks to the media at the Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts, U.S., on Monday, Sept. 24, 2012. Square Inc., the mobile payment startup founded by Dorsey, is giving small merchants more flexibility in how they pay for credit-card transactions, increasing competition with PayPalâs rival card reader. Photographer: Scott Eisen/Bloomberg via Getty Images
DETROIT, MI - SEPTEMBER 12: Jack Dorsey, Chairman of Twitter and CEO of Square, speaks with the media after speaking at TECHONOMYDETROIT September 12, 2012 in Detroit, Michigan. The event, hosted by the Detroit Economic Club, is a one-day multidisciplinary gathering of national and local leaders about reigniting U.S. competitiveness, creating jobs, and revitalizing our cities in a technologized age. (photo by Bill Pugliano/Getty Images)
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The company expects to incur cash expenditures of between $10 million to $20 million as a result of the restructure, plus a $5 million to $10 million hit in non-cash expenditures, related to stock-based compensation.

Here are the key numbers from Twitter's Q3 earnings:

Q3 revenue: $616 million, up 8% year-over-year — versus $605.84 million expected by analysts.

Q3 EPS (adjusted): $0.13 — versus $0.09 expected by analysts.

Q4 revenue guidance: Twitter opted not to offer Q4 revenue guidance, owing to the restructure — analysts estimated Q4 revenue of $763.47 million (although this was ahead of the reorganization announcement).

Q3 monthly active users: 317 million, up 3% year-on-year.

Q3 daily active users: Up 7% year-on-year

Twitter announced its earnings at the unusual time of 4 a.m Pacific Time before the market opened. Usually, tech firms based on the West Coast post their results after the market close.

The company said in press release earlier this week the rescheduling was "in response to analyst requests, to avoid overlapping with several other earnings announcements in the Internet sector scheduled for Thursday afternoon." Google and Amazon will report their earnings later on Thursday.

The company did not make any mention of a much-rumored sale. Dorsey and Twitter's other executives will no doubt be asked questions about that topic on the earnings call, which is scheduled for 5 a.m. PST.

Big name suitors that have reportedly taken a look at buying Twitter in recent weeks included Disney, Softbank, and Salesforce. The latter company's CEO, Marc Benioff, explained he walked away from a deal owing to Twitter's price, work culture, and the amount of abuse on the site.

More to follow ...

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See Also:
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Twitter is planning to cut as much as 8 percent of its staff this week

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