A fourth straight quarter of revenue growth below 30% and a 34% jump in expenses may have weighed on investors.
The quarter also beat the company's expectations for subscriber growth, gross margins and operating profit.
Pinterest's adjusted loss was three times worse than expected, taking some of the steam out of the stock's post-IPO surge.
“Twitter is on a path to sustainable revenue growth and accelerated profit expansion," one analyst says.
“We expect our revenue growth rates to decline by high-single-digit percentages from prior quarters sequentially in both Q3 and Q4,” CFO David Wehner says.
The Norway-based browser provider is seeking to “deliver more personalized content discovery” through artificial intelligence technologies.
"The monetization and ad growth machine at Twitter is finally heading in the right direction," one analyst says of the Q1 results.
The fourth quarter "was a breath of fresh air for investors that have patiently awaited for this turnaround story to manifest after years of pain."
The company's shares jump more than 18% as Q3 earnings top estimates and it forecasts "we will likely be GAAP profitable" in the next quarter.
The social media site added no monthly users in Q2, dashing the hopes of investors after a growth surge earlier in the year.
Advertising revenue in the fourth quarter rose 57%, to $5.64 billion, beating analysts' average expectation of $5.15 billion.
