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| Twitter to cut jobs as revenue growth slows | Twitter to cut jobs as revenue growth slows |
| (35 minutes later) | |
| Twitter is cutting 9% of its workforce - about 300 jobs - after reporting a sharp slowdown in revenue growth. | Twitter is cutting 9% of its workforce - about 300 jobs - after reporting a sharp slowdown in revenue growth. |
| In the three months to September, revenues rose 8% to $616m. That was better than forecast, but lower than the 20% rise in the previous quarter. | In the three months to September, revenues rose 8% to $616m. That was better than forecast, but lower than the 20% rise in the previous quarter. |
| The number of average monthly active users rose 3% to 317 million. | The number of average monthly active users rose 3% to 317 million. |
| Last month, Twitter hired bankers ahead of a possible sale, but bids from potential suitors such as Google and Salesforce failed to materialise. | Last month, Twitter hired bankers ahead of a possible sale, but bids from potential suitors such as Google and Salesforce failed to materialise. |
| Shares in Twitter fell 7% earlier this month after Salesforce - considered to be the most likely bidder - said it had walked away from talks. | |
| Jack Dorsey, chief executive, said he saw a "significant opportunity to increase growth" as the company improved the platform. | |
| "We have a clear plan, and we're making the necessary changes to ensure Twitter is positioned for long-term growth," he said. | |
| "The key drivers of future revenue growth are trending positive, and we remain confident in Twitter's future." | |
| Profit goal | |
| However, Twitter remained heavily in the red in the quarter with a $102.8m net loss, down from a $131.7m loss in the same period last year. | |
| Chief financial officer Anthony Noto said the company aimed to become profitable in 2017. "We intend to fully invest in our highest priorities and are de-prioritising certain initiatives and simplifying how we operate in other areas," he said. | |
| Advertising revenue rose 6% to $545m, while data licensing and other revenue jumped 26% to $71m. | |
| International revenue soared by more than a fifth to $242m, growing more than in the US, where revenue was largely flat at $374m compared with the same period last year, | |
| Twitter shares, which have fallen by a quarter this year, rose 4% to $18 in pre-market trading in New York. |