Twitter’s revenue has fallen for the first time, as advertisers have pulled back from the social media service favoured by Donald Trump, celebrities and journalists. However, the Silicon Valley company, which has never turned a profit, cheered investors by announcing a significant rise in the number of monthly users, to 328 million.
Shares in the company, which hit a peak of $69 in 2014, rose by more than 10% to $16.14 on Wednesday as the revenue and user number figures exceeded analysts’ expectations.
Jack Dorsey, Twitter’s co-founder and chief executive, said he was “proud to report” that the number of active daily users had increased for the fourth consecutive quarter and was up 14% on this time last year. But he conceded that the company, which has never made a profit, was still battling “revenue headwinds”.
The San Francisco-based firm reported an 8% fall in first-quarter revenue to $548m (£427m). It is the company’s first fall in year-on-year quarterly revenue since it floated on the stock market in 2013.
Advertising revenue for the three-month period fell 11% to at $474m, but the drop was softer than the $443m that analysts had predicted. Some income from licensing deals increased.