Social media company Twitter’s stock immediately rose 4 percent after releasing better than expected earnings for the third quarter. In addition to Twitter’s better than expected earnings, this company announced that it will layoff 9 percent of their total workforce.
Twitter earned $616 million in revenue in the third quarter. Analysts were expecting a revenue around $606 million. Also, this company adjusted 13 cents per share, which was four cents higher than analysts’ predictions.
This social media company has had trouble getting new monthly active users to join their site in recent years. This quarter the social media company added a decent 4 million monthly active users, which gives Twitter a total community of around 317 million active users. The company also said that their daily user growth was accelerating by 7 percent in the most recent quarter.
Earlier in the week, Twitter executives said they would laying off 8 percent of their workforce. Apparently that number rose by 1 percent since that date. This 9 percent layoff translates to 350 Twitter employees. Executives hope these layoffs will streamline certain areas of Twitter’s business so they can operate more efficiently in the future.
Twitter said that this layoff was a part of a larger restructuring project. The Twitter team wants to make more partnerships and reorganize their marketing and sales teams. They also hope this restructuring will help them reach GAAP profitability by next year.
Twitter CEO Jack Dorsey told reporters he believes this quarter’s great numbers are attributable to the company’s focus on enhancing Twitter’s new feed, improving the response to harassment issues, and offering more live and streaming videos via Periscope.
Twitter’s stock (ticker TWTR) is currently hovering around $17.50.