Twitter Sinks Despite Topping Estimates in Q1 Report

Shares of social media company Twitter were falling in early morning trading on Wednesday despite releasing am impressive first quarter 2018 report.

The company beat on both the top and bottom line but it wasn’t enough to impress investors.

For the first quarter, Twitter reported adjusted earnings of $0.16 a share. This was a growth of 45.5% from the year ago quarter and easily sailed by the $0.12 that analysts had been expecting. This was the second profitable quarter in a row on a GAAP basis for the company.

Revenue for the period was $664.9 million, which also easily sailed by the $610 million that analysts waited for. It was also a growth of about 21.3% YOY.

So why the drop in share price then? The company’s data licensing division may have had something to do with it. Twitter said it totaled net sales of $90 million in the category. This was better than the $84 million expected and a growth of 21.6% YOY. The problem is that it may have kept the company’s first quarter profit afloat.

Disclaimer: We have no position in Twitter Inc. (NYSE: TWTR) and have not been compensated for this article.