Twitter said it has been purging offending accounts, which led to many users seeing drops in their official follower counts, but it said majority were inactive already and wouldn't impact monthly user numbers.
Shares in Twitter slumped 16 percent in pre-opening trades in a market jittery following a weak outlook from social network leader Facebook.
The company's stock dropped 20.5 per cent after it warned the number of users could fall further in coming months as it continued to crack down on hate, abuse and online trolls.
On Friday, the social media company reported declining monthly active users.
Twitter reported second-quarter net income of $100.1 million, after reporting a loss in the same period a year earlier. Analysts surveyed in advance by Yahoo Finance expected Twitter to post earnings of $0.17 per share on $696 million in revenue.
Twitter escalated its battle against suspicious accounts late previous year in the face of congressional and public pressure following revelations about how Russian Federation used the platform to spread disinformation to shape the 2016 presidential campaign in favour of Republican Donald Trump and against Democrat Hillary Clinton.
Profit was $100m, marking Twitter's third quarter in a row of profits.
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Mr Dorsey said in a statement that daily users grew 11% compared with a year ago, saying this showed the firm's measures were turning the service into a daily utility.
In the financial report released Friday, the company acknowledged that "our work sometimes includes the removal of accounts, some of which are included in our metrics", but that getting rid of problematic accounts will make the service more user-friendly, driving future growth.
"They're cleaning up a lot of MAUs that are not good or real", said Richard Greenfield, an analyst at BTIG, referring to monthly active users.
Long criticized for allowing bad behavior to run rampant on its platform, Twitter has begun to crack down, banning accounts that violate its terms and making others less visible. The company doesn't disclose the total number of daily users.
The user outlook came as Twitter reported higher-than-expected revenue thanks to the FIFA World Cup, video ads and booming worldwide ad revenue.
The huge number of deletions have raised concerns among investors that Twitter - the favorite communications tool of U.S. President Donald Trump - can't attract a more general audience to supplement the politicians, entertainers and journalists who are among its prime users.
Revenue of $710.5 million edged out expectations.
The company increased its capital expenditures forecast for the year to between $450 million and $500 million, from $375 million to $450 million, as it expands and upgrades the computer infrastructure underlying its service.