Twitter approaches profitability as net losses decrease

It seems that Twitter may be finally turning a profit in the last quarter of the year, according to its latest forecast.

The company has yet to present a profitable quarter based on generally accepted accounting principles (GAAP), and that’s exactly what may happen in Q4 2017.

The company yesterday announced a Q3 revenue of $590 million, down 4% from Q4 2016. Twitter says the drop was due to closure of its TellApart advertising product.

Overall, net losses for the quarter were $21 million, down from $103 million during the same quarter the previous year.

CEO of Twitter, Jack Dorsey, said:

“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.”

The company partially covered its costs by cutting expenses by 16% earlier this year. In addition, the network gained momentum thanks to video and its direct response advertising formats.

Twitter also admitted that it miscalculated its user base for some of its third-party apps since 2014 and has been overstating figures by one to two million per quarter.

For Q3, the average monthly users were 330 million, up 4% the year over. Meanwhile, daily active users grew 14%. Twitter said:

“Growth in both audience and engagement was driven by a combination of organic growth, marketing, and product, including the ongoing benefits of improved relevance in email, push notifications, and the timeline.”