The Twitter logo perches high above the company’s headquarters in San Francisco, Calif., Thursday, Jan. 26, 2017. (Karl Mondon/Bay Area News Group)
SAN FRANCISCO — Twitter on Wednesday reported first-quarter earnings and sales that beat Wall Street’s expectations, sending its shares up by more than 10 percent in pre-market trading.
The struggling tech firm’s saw its revenue decline for the first time though as a public company, a sign that Twitter still has more work to do to attract advertising dollars.
“We’re delivering on our goal to build a service that people love to use, every day, and we’re encouraged by the audience growth momentum we saw in the first quarter. 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,” said Jack Dorsey, Twitter’s CEO in a statement.
From January to March, the tech firm’s sales dropped 8 percent to $548 million, but beat the $509 million in revenue that analysts surveyed by Bloomberg expected.
Twitter posted a loss of 9 cents per share in the first quarter, which was better than the loss of 20 cents per share anticipated. Excluding certain one-time expenses, the company earned 11 cents per share, above the 1 cents per share projected.
But Twitter, which has made efforts to become profitable this year, reported a net loss of $62 million in the first quarter, a decrease of 23 percent compared to the same period last year.
Still, the tech firm is facing more competition from Facebook, Snap and other social media companies for ad dollars this year.
Twitter monetizes its user base at about half the rate of Facebook and we are not sure it can close the gap entirely,” wrote Mark Mahaney, an analyst with RBC Capital Markets in a note before Wednesday’s earnings. “Further, its interest from advertisers appears to be waning.”
It’s also grappled with layoffs, a string of executive departures and takeover bids that didn’t come to fruition.
The company grew its monthly active users to 328 million in the first quarter.
Check back later for updates.