Shares of Twitter (NYSE:TWTR) rose as much as 12.4% on Monday after the social network reported better-than-expected first-quarter results. As of 11:42 a.m. EDT, the stock had gained 11.1%.
Expectations were low going into Twitter's first-quarter earnings report, with analysts predicting the company's first year-over-year revenue decline and slow user growth. While its results for the quarter weren't spectacular, they were well ahead of expectations.
Twitter reported revenue of $548 million, down 8% year over year, but ahead of a consensus analyst estimate for about $513 million. In addition, Twitter said it had 328 million monthly active users, up 6% year over year and 3% sequentially. Many analysts expected Twitter to add about 2 million monthly active users during the quarter, according to WSJ.
Twitter reported first-quarter non-GAAP EPS of $0.11, down 20% year over year, but above the consensus analyst estimate of $0.01.
Going forward, Twitter said it will "remain focused on our initiatives to grow revenue by simplifying our revenue product portfolio, communicating our progress to advertisers, and reallocating resources to our highest revenue generating priorities."
Furthermore, Twitter said it will continue to streamline its cost structure and focus on operational efficiency. For the full year, management expects non-GAAP expenses to be flat to down 5% compared to last year. Also, stock-based compensation should fall 20% to 25% compared to 2016.