Twitter reports increased revenue despite major loss of users

U.S. social media giant Twitter on Thursday posted a 29 percent year-on-year increase in revenue to 758.1 million U.S. dollars during the third quarter, though it lost a large number of active users.

Twitter CEO Jack Dorsey said the company is focusing on keeping the company's healthy service by removing "spammy accounts," which brought the total active user count down to 326 million per month in the third quarter, compared with 335 million monthly active users during the April-June period.

The significant drop was a result of massive removal of millions of locked or fake accounts this year.

Twitter's remarkable revenue for the third quarter beat Wall Street estimate of about 703 million dollars for the period.

Twitter's share price went up more than 10 percent in premarket trading Thursday, and the earnings per share stood at 0.21 dollars on a diluted basis.

The company made a big profit from advertising in the third quarter, posting a 29 percent increase on a year-on-year basis.

"We're achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service," Dorsey said. "We're doing a better job detecting and removing spammy and suspicious accounts at sign-up."

Twitter's CFO Ned Segal said the social media company's Q3 financial results, which were released Thursday, reflected its success with advertisers, delivering revenue growth of 29 percent and better than expected growth across most products and geographies.

Dorsey said the third quarter's strong results proved the company prioritized its long-term health while "growing the number of people who participate in public conversation."