Twitter, Inc. (NYSE: TWTR) on Wednesday reported first-quarter revenue and earnings that beat analysts’ estimate. But the shares were traded lower in the morning.
The social media company said revenue increased 21 percent to $665 million in the first quarter, beating analysts’ estimate of 608 million, according to Thomson Reuters.
First quarter net income was $61 million, or 8 cents per share, compared to a loss of $61.6 million, or 9 cents per share, a year earlier.
Excluding certain items, the company earned 16 cents per share in the first quarter. Analysts polled by Thomson Reuters had estimated earnings of 12 cents. This is the second straight quarter that twitter reported profitable earnings.
"The first quarter was a strong start to the year," said Jack Dorsey, Twitter CEO. "We grew our audience and engagement, marking another quarter of double digit year-over-year DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter. We also introduced a new framework to think more cohesively about the issues affecting our service, including information quality and safety. This holistic approach will help us more effectively address these challenges by viewing them through the broader lens of the health of the public conversation, and we're encouraged by our initial progress in this area."
The company also added more users in the first quarter. Monthly active users increased by 6 million to 336 million.
The better-than-expected earnings sent twitter shares higher in premarket trading. But it gave up its gains and was traded 3 percent lower in the early trading on Wednesday.