Twitter shares fell 12% after-hours after the loss-making social network reported another quarter of slowing user growth.
The early investor reaction to its latest results followed the revelation that monthly active user numbers grew by 11% year-on-year in the third quarter of its financial year – down from a rate of 15% over the previous three months to total 320 million.
Twitter’s revenues surged ahead – growing by 58% on the same period a year earlier to $569.2m – but its forecast for future earnings in the current quarter came in below analysts’ expectations.
Chief executive Jack Dorsey – who returned to the role this month following the departure of Dick Costolo – has already acted to limit costs by cutting more than 330 jobs.
The number of employees affected – mostly engineers – totalled 8% of the workforce.
Mr Dorsey said today: “We’ve simplified our roadmap and organisation around a few big bets across Twitter, Periscope, and Vine that we believe represent our largest opportunities for growth.”
He is under pressure to secure value for investors who have never seen a profit in Twitter’s near-decade-long history.
Twitter lost $132m during the company’s third quarter, with the total now at around $2bn.