Mike Blake/Reuters
Twitter reported its first ever year-over-year decline in revenue growth for its first quarter earnings on Wednesday, but still managed to beat analysts' expectations across the board and boost its shares more than 10% in pre-marking trading.
The company beat expectations of $0.01 EPS with $0.11 EPS and $512 million in revenue with $548 million. It also blew past user growth estimates of 2.3 million by adding 9 million more monthly actives.
In its letter to shareholders, Twitter contributed its higher-than-expected user growth to recent moves towards simplifying its product, like not counting user handles towards a tweet's 140-character limit, and squashing abusive behavior with new moderation and reporting tools.
Still, the company said it expects revenue growth to continue to "meaningfully lag audience growth in 2017."
"We believe, however, that executing on our plan and growing our audience should result in positive revenue growth over the long term," Twitter wrote.
Shares of Twitter immediately surged over 10% in pre-market trading on Wednesday.
Here are the key numbers from Twitter's Q1 earnings:
- Earnings per share (adjusted): $0.11 vs. $0.01 expected, down from $0.15 in the year-ago period.
- Revenue: $548 million vs. $512 million expected, down from $595 million in the year-ago period.
- Monthly active users: 328 million, up 9 million from the previous quarter.
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