Twitter Impresses The Street In Its Q3 Report, Shares Jump 8%

Shares of Twitter Inc TWTR gained more than 8 percent early Thursday morning after the company's third-quarter earnings report impressed investors. Twitter earned 10 cents per share in the third quarter on revenue of $590 million. Wall Street analysts were expecting the social media company to earn seven cents per share on revenue of $568 million.

Here are some of the notable highlights from the earnings report.

• Advertising revenue fell 8 percent year over year to $503 million while total revenue fell 4 percent from a year ago but rose 3 percent sequentially.
• Data licensing and other revenue rose 22 percent to $87 million.
• By segment, U.S. revenue fell 11 percent to $332 million, international revenue rose 6 percent to $258 million.
• Total ad engagements rose 99 percent while cost per engagement fell 54 percent.
• Daily active usage rose 14 percent while monthly active usage grew 4 percent.
• Total MAU rose from 326 million last quarter to 330 million.
• By segment, U.S. MAU rose from 68 million last quarter to 69 million and international MAU rose from 258 million to 261 million over the same period.
• Twitter said it has been incorrectly counting users of a third-party ad service as in the past as active users although the total amounted to no more than one to two million users per quarter.
• GAAP net loss of $21 million in the quarter marks a 79-percent decrease from a year ago.
• Adjusted third-quarter EBITDA of $207 million marks an increase of 14 percent from a year ago.
• Twitter guided its fourth-quarter EBITDA to be in a range of $220 million to $240 million.

At time of publication, shares of Twitter were up 10.56 percent at $18.95 in Thursday's pre-market session.

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