Twitter had a negative return on equity of 1.21% and a negative net margin of 15.08%.
Consequently, Dorsey explained that the percentage of users who abandon tweets has declined while overall user engagement has increased.
Last month, Chief Operating Officer Anthony Noto announced his resignation from the company following Thursday's earnings report.
Shares closed 12.1 percent higher at $30.18 after hitting a high of $35.00.
Micro-blogging service Twitter yesterday posted its first quarterly profit, amid a decline in USA users and a streak of declining revenue.
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Twitter also has an "image problem, " Wedbush analyst Michael Pachter said in a recent research note, "as it has been slow to act on harassment and other hostile behaviour".
The only downside was user growth, which remained flat at 330 million monthly active users. Twitter attributed its lack of user growth to Safari's third-party app integration changes, seasonality and its efforts to crack down on fake accounts and spam.
Twitter said revenue was helped by using data to make the targeting of ads more individualized, a process known as machine learning.
In a letter to shareholders, Twitter chalked up the sales boost to "better-than-expected growth" in ad sales "across all major products and geographies".
The company also cited higher video ad sales and redesigned ad formats as helping to grow revenue.
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On average, analysts were expecting Twitter to report revenue and non-GAAP EPS of about $686 million and $0.14, respectively. Twitter carries about 1.2 percent of the market - roughly on par with Facebook's Instagram.
Twitter reported a profit of $91 million in the last three months of 2017, compared with a loss of $167 million in the fourth quarter of 2016. Nordea Investment Management AB now owns 19,027 shares of the social networking company's stock valued at $340,000 after acquiring an additional 422 shares during the last quarter. During the same period previous year, the company earned $0.11 earnings per share. Dorsey splits his time between Twitter and his other company, the digital-payments firm Square. The company's stock jumped 25 percent in pre-market trading. The company has the ability to continue double-digit engagement growth while greatly improving monetization rates.
Twitter also faces criticism as federal and state authorities scrutinize companies that sold millions of fake followers on social-media platforms. In comparison, Facebook Inc has 2.1 billion monthly users, while Snapchat owner Snap Inc, which does not report a monthly figure, has 187 million daily users.
Twitter has "less than Jack's undivided attention", Pachter said, adding that nonetheless Dorsey runs the company with a "benevolent autocracy" that leaves little room for innovation.
In other Twitter news, Director Evan Clark Williams sold 452,500 shares of Twitter stock in a transaction that occurred on Thursday, June 29th.
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Also, it has an estimated price-earnings (P/E) multiple of 63.5 and a trailing 12-month price-earnings (P/E) multiple of 13756.25. Pioneer Investment Management Inc bought 26,098 shares as the company's stock declined 13.24% while stock markets rallied.
The social media sector is trying to cope with a regulatory backlash in Europe and the United States over privacy, addiction to the medium, hate speech and alleged abuse of social media by Russian Federation to sway foreign elections. Finally, Vanguard Group Inc. boosted its position in shares of Twitter by 4.1% during the first quarter.