Twitter stock soars 10% after beating expectations for revenue and user growth

Shares of Twitter were up 10 percent on Wednesday after the company beat expectations for both revenue and user growth for its first quarter of 2017.

Twitter posted earnings per share of $0.11 and revenue of $548 million for Q1 2017; analysts expected earnings per share of $0.01 and revenue of $511 million. The company’s revenue was down 8 percent year-over-year, but beating the Q1 estimate is one reason for the stock jump today.

The company also added nine million users, its largest quarterly growth since Q1 2015. Twitter now has 328 million monthly active users; analysts expected around 321 million.

Twitter also saw daily active usage spike by 14 percent year-over-year. The company does not report a daily active user stat.

“We believe our audience growth has been driven by a combination of: organic growth (reflecting some seasonal strength), product improvements (including better relevance in the timeline and notifications), and marketing,” Twitter wrote in its shareholders letter.

Twitter continues to focus on live video — it streamed 800 hours of live content to 45 million unique viewers last quarter — but those ambitions took a hit last month when it lost out to Amazon for the rights to stream Thursday Night Football NFL games. Amazon paid a reported $50 million to stream 10 games next season, five times as much as Twitter paid last year.

Twitter’s stock is down 10 percent in the past year, and down 4 percent over the past quarter. The company is valued at just under $12 billion.

You can read Twitter’s letter to shareholders here.