Twitters shares dropped 12 per cent in after-hours trading following the companys Q3 tradings report, which saw investors once again disappointed by user growth, despite year-on-year increases in revenue.

Monthly active users grew by 4m from last quarter, up to 320m, but fell short of the 324m expected by analysts. Excluding SMS followers, the figure was at 307m, up from 304m in Q2. Facebook, which is already four times larger than Twitter, managed to add 49m new monthly users in Q2 2015.

Revenues were up 58 per cent year-on-year and ahead of where was predicted by analysts, bringing in $569m, but Twitter had already pre-announced they were expecting revenues to be at the top end of its forecast range. Overall, the company made a net loss of $132m for the quarter, compared to $175m in Q3 2014.

Worryingly for Twitter, but in good news for marketers, there appears to have been a sharp drop in Twitters ad prices, with cost per ad engagement down 39 per cent year-on-year, suggesting that the company may be slashing prices to maintain ad volumes.

Its not a great start for new CEO Jack Dorsey, who has been tasked with turning the struggling service around and bringing in new users and advertisers. While Dorsey has overseen a raft of new features being added for both consumers and brands, whether he has a more long-term plan to dramatically boost the social networks user growth remains to be seen.

“Our focus is on three things,” said Dorsey during the earnings call to investors, which was live-streamed on Twitter-owned app Periscope. “A more disciplined execution, simplifying our services and better communicating our value. We have made meaningful progress across all three.

Dorsey also announced that the company would be running a new TV commercial during the Baseball World Series in an effort to promote its new Moments curated news service. The ad, which is targeted at young consumers, describes the feature as “a new way to get the best of Twitter”.

“You can find Moments in our app, on Twitter.com and embedded inside all over the web. Our focus on Moments now is making them easier to discover, getting people into them right when they open Twitter and rolling our curation globally beyond the United States.

“Moments is just the start of bolder simplification efforts you will see on Twitter. Ive challenged our teams to look beyond assumptions about what makes Twitter the best place to share whats happening. Im confident our ideals will rsult in the service thats far easier to understand and much more powerful.”