TechCrunch's Matthew Lynley reports that with Twitter’s acquisition hopes essentially dead, the company now seems it’s on its own to fend for itself and needs to figure out a way to build a reasonable and profitable business.
Last week it got a much-needed good Q3 performance by largely beating Wall Street’s expectations across the board. The company also confirmed that it would lay off roughly 9 percent of its staff, or about 300 employees, as it looks to restructure itself into a company that can continue to run on its own and keep Wall Street happy. Those layoffs are targeted at sales, marketing and partnerships, the company said, confirming an earlier TechCrunch report.
Twitter reported earnings of 13 cents per share and revenue of $616 million, and the service grew to 317 million users. Analysts were looking for earnings of 9 cents per share on around $606 million in revenue, as well as 315 million monthly active users. Last quarter, the company had 313 million monthly active users.
After the rare beat — and a brief rush of optimism — Twitter’s shares rose as much as 5% in pre-market trading. Ironically, by Twitter standards, this isn’t that much of a swing, but it surely must be a breath of fresh air for the company’s executive team and employees which have seen the company’s stock continue to stumble for the past year. Given that there’s little guidance for the fourth quarter, however, shares have come down and are only up around 3.5% now.