Twitter released its Q3 2016 financial results Thursday, and it also announced it will reduce its workforce by approximately nine percent.
For the third quarter of fiscal year 2016, Twitter saw revenue of $616 million, which is an increase of eight percent year-over-year. Advertising revenue for the quarter was $545 million, which is an increase of six percent year-over-year. Twitter’s generally accepted accounting principles (GAAP) net loss was $103 million for the quarter.
In addition to revealing its third quarter results, Twitter announced a restructuring and that it will reduce its global workforce by approximately nine percent. In a release, Twitter said the restructuring “focuses primarily on reorganizing the company’s sales, partnerships, and marketing efforts,” and that the restructuring “is intended to create greater focus and efficiency to enable Twitter’s goal of driving toward GAAP profitability in 2017.”
Jack Dorsey, CEO of Twitter, commented in the release:
Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter. We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.
Readers: What are your thoughts on Twitter’s financial results for Q3 2016?