Twitter (NYSE:TWTR) shares rose slightly in premarket trading on Thursday after the social network, which is in the process of being acquired by Elon Musk, reported mixed first-quarter results, with revenue coming in lighter-than-expected.
For the period ending March 31, Twitter said it earned an adjusted $0.90 per share on $1.2 billion in revenue, up 15.4% year-over-year. Wall Street analysts had expected the company to earn $0.87 per share and $1.23 billion in sales.
Advertising revenue rose 23% year-over-year to $1.11 billion, while subscription and other revenue fell 31% year-over-year to $94 million, including the divestiture of MoPub. Without MoPub, subscription revenue fell 5% year-over-year.
In addition, the company said costs and expenses totaled $1.33 billion during the period, up 35% year-over-year, as stock-based compensation rose 60% year-over-year to $177 million.
Net income during the quarter was $513 million, though that was aided by a $970 million pre-tax gain from the sale of MoPub for $1.05 billion.
Twitter (TWTR) ended the quarter with 229 million monetizable daily active users, up 15.9% year-over-year. In the U.S., it had 39.6 million monetizable daily active users, up 6.4% year-over-year and 189.4 million monetizable daily active users internationally, up 18.1% year-over-year.
The company pulled guidance and previously said it would not hold a conference call to discuss the results in light of the pending acquisition.
As part of the deal between Musk and Twitter (TWTR), Musk is barred from sending disparaging tweets about the $44 billion acquisition.