Twitter reported Thursday stronger-than-expected profits and revenues in the third quarter, igniting a strong rally in shares of the key social network.
The San Francisco group delivered a $789 million profit, including one-time gains, compared to a net loss of $21 million in the previous year, as revenues grew 29 percent to $758 million.
Twitter shares rallied 13.6 percent in premarket trade following the results, as the markets overlooked a dip in the number of users of the short-messaging service.
Average monthly active users totaled 326 million, down from 335 million in the previous quarter. The company said the drop came from efforts to weed out fake and inauthentic accounts. The recently enacted privacy rules in the European Union also had an effect.
The record profit included one-time gains from tax and asset valuation adjustments. Excluding those items, profits amounted to $163 million.
Twitter said the drop in its user count was a direct result of efforts to improve the "health" of its platform by removing fake and abusive accounts.
"We're achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service," said chief executive Jack Dorsey.
"We're doing a better job detecting and removing spammy and suspicious accounts at sign-up... This quarter's strong results prove we can prioritize the long-term health of Twitter while growing the number of people who participate in public conversation."
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