Twitter surprised the Street by releasing quarters that beat estimates. Despite seeing its first year-over-year decline in revenue, the earnings report pleased investors.
Twitter reported its Q1 earnings ahead of the bell and posted first quarter revenue of $548 million. Although this was down 8% from the quarter a year ago, it still beat the average analysts’ estimate of $512 million.
The most impressive was the social media company’s adjusted earnings at 11 cents per share. Although the company saw 15 cents in the same quarter a year ago, it blew away the estimate of 1 cent from the street.
Shares of Twitter exploded soon after the results were posted and gained nearly 8%.
The company reported that its average number of monthly active users rose 6% year over year to 328 million for the quarter. This was up 9 million from the previous quarter and beat the estimate of 322 million.
The addition of monthly active users was also the biggest increase since 2015.
Looking ahead Twitter sees adjusted earnings for the current quarter of $95 million to $115 million. The consensus estimate had been looking for $141 million.
CEO Jack Dorsey said in comments, “While we continue to face revenue headwinds, we believe that executing on our plan and growing our audience should result in positive revenue growth over the long term.”
Disclaimer: We have no position in Twitter Inc. (NYSE: TWTR) and have not been compensated for this article.