On Thursday, October 26, Twitter revealed its fourth-Quarter earnings report and announced that the company has 330 million monthly active users as of September 30. The social media platform has performed exceptionally well. Twitter’s fourth-quarter revenue figures have beaten market expectations, leading to a rise of 11 percent in its premarket trading.

Twitter registers a profitable quarter

The soaring figures and high number of monthly users are attributed to expansive budget cuts. These cuts were issued in the last few months. The fact that Twitter has sought revenue sources beyond advertising, which is the primary source of profits for any social media platform, has also aided in its growth.

The San Francisco-based company also revealed the existence of an error in its user base calculation method since 2014. Upon this discovery, Twitter revised its methods and recalculated the figures.

However, the difference between the new calculation and old estimates is less than 1 percent. The number of monthly users for Twitter increased by 4 million in the fourth quarter, when compared to the third quarter. A Reuters report revealed that the increase occurred due to extensive use of push notifications, along with emails. These methods adopted by Twitter alerted users of tweets they would want to read.

Twitter performs better than market expectations

Jack Dorsey, the CEO of Twitter, stated in a press release that the company made progress in three major categories.

Dorsey revealed that apart from registering revenue growth, the microblogging site was successful in attracting the attention of its audience and keep them engaged. Lastly, the senior executive revealed that the company was able to achieve record profitability in the fourth quarter, which eventually led to overall growth.

Dorsey also disclosed that the changes and upgrades made on Twitter worked in favor of the company.

These changes aided in not only bringing people back to the platform but also helped in user retention. According to a CNBC report, Twitter registered a revenue of $590 million, surpassing the $586.7 million projected by analysts. In its fourth quarter, the social media platform’s EPS was 10 cents, which was higher than the expected 6 cents forecasted by the Thomson Reuters survey.

In terms of Monthly Active Users, Street Account gave Twitter a projection of 330.4 million users in its fourth quarter. The social media platform managed to come close to the estimation by accumulating 330 million users.