Shares in Twitter are reported to have dropped to their lowest levels since the company's stock market flotation.
The number of active users on the social networking site reached 255 million in the first three months of 2014; up 5.8% on the previous quarter, yet below analysts' expectations.
Twitter reported a loss of $132 million, yet posted revenue of $250m, of which $226m came through advertising.
The rise in active Twitter users comes after four consecutive quarters of declining growth, yet the turnaround was not strong enough to convince investors.
Dick Costolo, Twitter's chief executive highlighted the company's revenue increase and said it was fuelled by "increased engagement and user growth".
He also added: "The integration of advertising management software MoPub helped Twitter reach more than 1bn IOS and Android users each month."
The number of Twitter users is still below Facebook, its high profile competitor, which boasts 1.28 billion active users.
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