The best thing that can be said about Twitter’s third quarter earnings is that it appears things are getting less bad at the struggling social media platform. And the company is optimistic that they make actually start to get better at some point in the not-too-distant future.

But that doesn’t mean that Twitter doesn’t have a few pratfalls left in it. More on that in a second.

On Thursday, the company reported earnings that topped lowered expectations set by Wall Street analysts. The company said revenue was $590 million, down 4 percent year-over-year, though 3 percent of that was do its shuttering earlier this year of TellApart. It lost $21 million this quarter, compared to $103 million for the same quarter one year ago.

Monthly average users rose 4 percent from a year ago to 330 million and up from 326 million in the previous quarter. Good news…but!

Twitter also disclosed that due to a technical era, it has been overcounting MAUs for TWO YEARS! That sound you hear is class action securities lawyers sharpening their pencils. The company lowered those MAUs by 1 to 2 million for each quarter the past couple of years. All is good now, the company says.

There are some bright spots. Daily active users or DAU was up 14 percent. Growth in video ads and live streaming events remain strong. And the data licensing is also on the upswing.

The trouble spot: The U S of A. Twitter said U.S. revenue was $332 million, a drop of 11 percent, with 5 percent of that due to TellApart. The company had more U.S. users, but that didn’t drive more revenue. Instead, it’s Japan where user growth and revenue growth seem to be really booming.

Investors were please. In early trading, the stock was up more than 13 percent to $19.52 per share.

Shared From Venturebeat