Twitter Inc. (TWTR) - Get Report shares surged Tuesday after the micro-blogging website posted stronger-than-expected first quarter revenues as monthly active users increased amid moves to remove harmful content and hate speech from the main platform.
Twitter said adjusted revenues for the three months ending in March came in at $787 million, up 18% from the same period last year and just ahead of the Street consensus of $774.8 million. Monthly active users increased by 9 million to 330 million, Twitter said, smashing expectations of a 2.2 million decline.
"We are taking a more proactive approach to reducing abuse and its effects on Twitter," said CEO Jack Dorsey. "We are reducing the burden on victims and, where possible, taking action before abuse is reported. For example, we are now removing 2.5x more Tweets that share personal information and ~38% of abusive Tweets that are taken down every week are being proactively detected by machine learning models."
"We're also continuing our work to make Twitter more conversational via the launch of our public prototype app (twttr), with the end goal of making conversation on Twitter feel faster, more fluid, and more fun," Dorsey added.
Twitter shares were marked 6.86% higher in pre-market trading immediately following the earnings release, indicating an opening bell price of $36.75 each, a move that would extend the stock's year-to-date gain to around 27.8%.