Despite stiff competition from Facebook and Snap, Twitter's monthly active users, one of the most closely watched metrics for analysts, increased 6 per cent, or 18 million, to 328 million in the first quarter from a year earlier.
As the company seeks to turn things around, it's focused on the DAU metric as a way to show the current users are more engaged as it roles out more live video products and other features created to keep people coming back more often.
Although it remains a long way from its early 2014 peak, Twitter's market value shot up 12 percent on the morning after delivering its results on Wednesday.
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.
Twitter has been seeking to broaden its appeal beyond its core user base of celebrities, politicians and journalists, ramping up efforts in video and live sports, notably.
The social-media platform beat on profit and revenue expectations, despite its first quarterly revenue decline.
For the first quarter, Twitter reported revenue of $548 million - down 8% year-over-year.
On a conference call with investors, CEO Jack Dorsey talked up the company's "core use case", which is "making sure that people go to Twitter and they see what's happening immediately".
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. In March, for example, the company said that it would use an algorithm to eliminate abusive accounts and to allow users to mute keywords, phrases or full conversations.
Earnings per share (adjusted): $0.11 vs. $0.01 expected, down from $0.15 in the year-ago period. While the company reported an eight percent drop in year-over-year revenue growth, investors were expecting a larger decline for the quarter.