Twitter Inc (TWTR) Shares Surge As Earnings Beat, User Growth Accelerates

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In light of this, Twitter retroactively decreased its number of monthly active users by one to two million for each of the last four quarters.

Daily active user growth: Up 14% from the year-ago period.

Twitter reported 330 million MAUs for the third quarter of 2017, and said its "adjusted year-over-year growth rate" is a 4.1% increase over the third quarter of 2016. The company has seen monthly active user figures increase, arresting the slide that it had to report across the summer.

Twitter Inc. has admitted to incorrectly reporting its single most important metric, monthly active users (MAUs), for almost three years.

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

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Twitter said it could show its first-ever profit in the fourth quarter, after making sweeping cuts in expenses in the past few months and finding sources of revenue beyond the advertising that dominates social media. The third-party app that led to the monthly user miscalculation, Digits, allowed Twitter users to log into other online services using their Twitter credentials. Now, the company claims that it has 330 million monthly active users, 69 million of which are based in the United States, up from 68 million in the last quarter. Analysts on average had expected 330.4 million monthly active users worldwide and 69 million in the United States, according to financial data and analytics firm FactSet.

"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", Twitter CEO Jack Dorsey said in the October 26 press release.

Twitter has also been criticised for not taking enough efforts to stop abuse and harassment on the platform.

Twitter said the error in past user estimates was caused when it wrongly counted people who logged into applications associated with the firm's Fabric software platform.

"We're committed to making Twitter safer, and we continue to improve and leverage our technology to reduce the reach of abusive tweets", Twitter CEO Jack Dorsey wrote in a letter to shareholders.