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Twitter lost more than half a billion dollars in the three months to September after it paid $809.5m (£588m) to settle a long-running lawsuit.
The social media giant was accused of misleading investors over user engagement in 2015.
However despite this one-off charge, its quarterly revenue grew 37% as it managed to shrug off the impact from Apple’s privacy changes which hit rivals such as Snap and Facebook.
This sent Twitters shares up 3%.