Twitter is spiking after saying it could finally turn a profit

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• Twitter is up 12.25% in early trading before earnings.
• Twitter reported a beat on earnings and revenue.
• The company said it overstated monthly users in the past, but still saw growth in the third quarter.

Twitter reported a beat on its third-quarter earnings ahead of Thursday's opening.

The company earned an adjusted $0.10 per share, doubling the Wall Street consensus of $0.05 per share. It took in $590 million in revenue, compared to the $587 million that analysts were expecting.

Shares of Twitter rose as much as 12.25% immediately following the results.

The company said its number of monthly actives users climb 4% versus a year ago to 330 million. It also said the number of daily active users was up 14% from a year ago, but didn't give a number.

Twitter disclosed that it had overstated monthly users in its previous earnings reports. The company said that by including certain third-party apps in its measurements, it had mistakenly overstated the number of users by 1 million in the fourth quarter of 2016 and 2 million in the first half of 2017.

The company said that with cost-cutting measures, it expects to turn a profit in the fourth quarter.

Twitter is up 16% this year after its post-earnings bump.

Read more about the company's earnings here.

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