(Corrects paragraph 2 to show monthly active users increased by
18 million from the first quarter a year earlier, not by 9
By Angela Moon and Rishika Sadam
April 26 Shares of Twitter Inc soared
in premarket trade on Wednesday after the microblogging service
reported better-than-expected user growth.
Despite stiff competition from Facebook Inc and Snap
Inc, Twitter's monthly active users, one of the most
closely watched metrics for analysts, increased by 6 percent, or
18 million, to 328 million in the first quarter from a year
Analysts on average had expected 321.3 million monthly
active users, according to market research firm FactSet
Twitter also said daily active users rose 14 percent in the
first quarter from a year ago. Twitter does not disclose the
number of total daily active users.
Twitter shares were up 11 percent at $16.25 in premarket
trade on Tuesday.
"Twitter is becoming more relevant to consumers. They are
making their products easier to use. And there is a global
thirst for news and information that they are benefiting from,"
said BTIG analyst Richard Greenfield.
"We believe usage will drive meaningful revenue and profit
growth in the next few years."
Twitter's revenue, however, fell 7.8 percent to $548.3
million in the first quarter, its first drop since its initial
Net loss narrowed to $61.6 million, or 9 cents per share, in
the first quarter ended March 31, from $79.7 million, or 12
cents per share, a year earlier. (bit.ly/2phNNZH)
Excluding items, the company earned 11 cents per share,
beating the estimate of 1 cent per share.
Twitter's user growth has stalled in the past few quarters
and the company has been trying to convince advertisers that it
will strengthen its user base.
As part of its efforts, the company has updated its product
offerings including live video broadcasts from its app and
launched new features to attract users.
Twitter's weak performance has raised questions about Chief
Executive Jack Dorsey's leadership and whether the company would
be bought by a bigger media firm. Financial markets speculated
about a sale of Twitter last year, but no concrete bids were
Twitter's advertising revenue fell 11 percent to $474
million in the quarter, above the average analyst estimate of
$442.7 million, according to market research firm FactSet
(Reporting by Angela Moon in New York and Rishika Sadam in
Bengaluru; Editing by Saumyadeb Chakrabarty and Meredith