Twitter Stock Falls On Weak Outlook - Update

(RTTNews) - Micro-blogging site Twitter Inc. (TWTR), Tuesday reported a smaller loss for the third quarter, as revenues surged 58 percent reflecting growth in its advertising business despite concerns over its stagnating user growth.

However, shares of the company slipped a near 11 percent in the extended session after it detailed a weak revenue outlook for the fourth quarter.

San Francisco, California-based Twitter expects fourth quarter revenues of $695 million to $710 million. Analysts currently estimate revenues of $739.73 million.

Twitter's third-quarter loss narrowed to $131.7 million or $0.20 per share from last year's loss of $175.5 million or $0.29 per share.

On an adjusted basis, earnings for the quarter were $67.0 million or $0.10 per share. On average, 38 analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter surged to $569.2 million from $361.3 million last year. Analysts had a consensus revenue estimate of $559.59 million.

Twitter said monthly active users were 320 million for the third quarter, up 11 percent from last year, but a small increase of less than 2 percent from the previous quarter.

Investors are concerned about Twitter's sluggish user growth and the amount of time each user spends on the networking site, as it gives a positive outlook of the company's advertising revenues.

Early this month, Twitter announced job cuts of up to 336 position, as part of a restructuring plan by co-founder and new CEO Jack Dorsey to organize the micro-blogging site's top product priorities and drive efficiencies throughout the company.

TWTR closed Tuesday's trading at $31.34, up $0.45 or 1.46%, on the Nasdaq. The stock further dropped $3.34 or 10.66% in the after-hours trade.