Twitter Q1: Now 328 Million Users, But Revenues Decline 8%

Twitter on Wednesday reported its first revenue decline since the tech firm went public in 2013, a sign that the company still faces an uphill battle to attract advertisers even as it lures in more users.

Twitter, according to a report from CNBC, today reported revenues of $548 million in the first quarter of 2017, a drop of 8 percent from the same period a year ago, marking the first such decline for the platform.

However, that tops the $512.1 million consensus analyst estimate. The company also reported that Monthly Active Users increased 9 million quarter-over-quarter, reaching 328 million. That’s an increase of 6 percent, a slightly better clip than the 4 percent growth the company reported last quarter.

Twitter executives, pointing to its bump in users, said it’s making progress. “This past quarter is giving us a lot of confidence in our focus and execution and excitement for our path ahead,” said Twitter CEO Jack Dorsey.

The social media app has been trying to improve its user experience and keep people more engaged, a challenge now that the dramatic U.S. election campaign is over. “We’re proud to report accelerating growth in daily active usage for the fourth consecutive quarter, up 14 percent year-over-year,” Dorsey continued.

The company reported that advertising revenue for the quarter was $474 million, a plunge of 17 percent year-over-year. That follows a slight decline in ad revenue last quarter, as well.

“We believe Twitter is the best place to drive brand perception, and we’re continuing to showcase our unique value proposition for advertisers,” said Anthony Noto, Twitter’s COO, in the shareholder letter. “We’ve received positive early feedback from our ad partners as we highlight the improved return on investment from our audience growth and better pricing.”