Twitter Inc. (NYSE: TWTR) shares jump on Wednesday after the company reported monthly active user growth that beat analysts’ estimate.
The company said monthly active users, a metric investors are closely watching, rose 6 percent to 328 million in the first quarter from a year earlier. Analyst had projected 321.3 million monthly active users. Twitter said daily usage has also increased faster.
"We're proud to report accelerating growth in daily active usage for the fourth consecutive quarter, up 14% year-over-year," said Jack Dorsey, Twitter's CEO. "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."
Twitter has struggled to attract new users since the company went public in 2013. It also faces competition from Facebook Inc., Instagram and Snap Inc. Twitter sought for a sale last year but failed.
Jack Dorsey said the company has done some work to improve its product and customers experience. In addition, the company tries to attract more users by streaming live video from sports, entertainment and news partners.
Twitter shares rose as much as 11 percent to $16.27 in the early trading.