Twitter slightly beats on earnings, grows daily users by 14%

Are things looking up for Twitter? CEO Jack Dorsey thinks so.                  James Martin  CNET

Are things looking up for Twitter? CEO Jack Dorsey thinks so. James Martin CNET

In its latest quarterly result statement, Twitter admitted it had been overestimating its monthly active user numbers by up to two million since the end of 2014. Worryingly for the company, its US advertising revenues fell 11% compared to the same period a year ago, although this was more than offset by booming global advertising advertising revenues, which grew by 6%.

Shares of the social platform have rocketed up almost 15 percent in early morning trading on Thursday, after the company hinted at imminent profits in its third quarter earnings report - despite announcing it had been miscalculating its MAUs by millions.

Twitter beat Wall Street's expectations for its third-quarter earnings and said it could finally turn a profit next quarter. It now claims to have 330 million active users - meaning an uptick of 4 million rather than 2 million.

The company did have to concede that it had miscounted its user figures in the second quarter, which masked a drop in its overall total.

And Twitter said daily active users - a metric for which it has declined to offer details - rose 14 percent from previous year.

Decorah Rotary participating in World Polio Day Tuesday
In February, King's Lynn Town Hall was decorated with purple lights to support the Rotary Club's campaign to eradicate polio. The Twin Rivers Rotary After Hours club met for World Polio Day , today in Moline.

"This quarter we made progress in three key areas of our business: we grew our audience and engagement, made progress on a return to revenue growth, and achieved record profitability", Dorsey wrote in a press release.

Twitter posted a loss of $21 million in the third quarter, a marked improvement from the $103 million deficit a year ago.

Wall Street rejoiced at Twitter's performance-company stock was up almost 15 percent in morning trading.

Twitter said that it had discovered monthly user numbers had wrongly included numbers from third-party applications that used a software-development program Digits. Analysts on average had expected 330.4 million monthly active users worldwide and 69 million in the USA, according to financial data and analytics firm FactSet. The fact that the platform is President Trump's favored communications tool is also likely to have raised Twitter's profile among potential users.

Google parent company Alphabet bought Digits and other developer tools from Twitter this summer, taking with it many of Twitter's nonexistent users.

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