The number of daily active Facebook users grew to 1.96 billion in the first three months of the year, ahead of Wall Street’s estimates of 1.94 billion, parent company Meta reported.
The result is a sharp turnaround from last year, when the social network reported for the first time a decline in users.
Shares jumped almost 20% after the news broke easing concerns by investors about Facebook’s growth.
Since the user fall was disclosed last February the firm’s share price has nearly halved, rising concerns on how competitors like Tik Tok would further impact the company founded by Mark Zuckerberg.
Despite the instant recovery, Meta still reported its slowest revenue growth in at least a decade. Revenues in the first three months of the year were up just 7% compared to 2021, hitting $27.9bn.
Monthly active Facebook users were up 3% year-over-year and daily active users grew 4%. Meta apps, which includes Instagram and WhatsApp, each grew 6% in a month.
Earlier this year Zuckerberg said Facebook and Instagram are working on new products and features to compete with TikTok, the main competitor.