Twitter's advertising revenue fell 11 per cent to $US474 million in the quarter, above the average analyst estimate of $US442.7 million, according to market research firm FactSet StreetAccount.
Average monthly active users were 328 million, up 6 percent year-over-year.
Twitter said the content reached 45 million unique users, up 31 percent from the fourth quarter which was the first full quarter of live content to be streamed on the social media platform. Twitter posted adjusted earnings of 11 cents a share, beating estimates projecting a penny per share.
Twitter's co-founder and chief executive, Jack Dorsey, said despite the "revenue headwinds", he believed continuing to grow the company's audience would "result in positive revenue growth over the long term". Shares, which had dropped by more than 10% ahead of the earnings release, rose by 13% in pre-market trading.
Twitter credited the surprise uptick in new users to tweaks made to its news feed and notifications as well as marketing and some seasonality.
"Twitter is becoming more relevant to consumers".
Daily active users were up 14 per cent on the same time previous year, though it did not disclose the exact numbers.
The company's ad revenue is declining even as the overall market for digital advertising increases, and even as the site is constantly in the news because of prolific use by U.S. President Donald Trump.
On the revenue front, Twitter did report a quarterly decline, noting that "there is still work to be done to translate" an improved user experience into revenue growth.
Slow rise in the number of users and an inevitably slow business from ad inventory due to the sluggishly rising user count are expected to bring trouble to Twitter's revenues.
Trump's frequent tweets ricochet well beyond his 28 million Twitter followers.
The San Francisco company said it had a loss of nine cents per share.
It should be noted that a lot of Twitter's numbers are still far from cheery. Recode postulates that the engagement he brought could potentially be the reason Twitter's growth. Given Twitter's recent sales trends and the fact that the company stopped providing quarterly sales guidance last fall, many analysts clearly feared the worst, and Twitter didn't deliver that.