Twitter topped consensus revenue / adj. EBITDA in 1Q in addition to delivering upside to mDAU / MAU forecasts. The revenue beat was largely driven by strength in the U.S. advertising business, which accelerated to +28% y/y growth. Operating income came in better than expected due to revenue upside and some non-headcount expenses slipping into future quarters. Twitter still expects expenses to grow approximately +20% y/y in FY 2019, implying its pace of investment will accelerate from 1Q levels. Overall we think Twitter took another step in the right direction in 1Q, but probably not the leap Tuesday's stock move implies. We maintain our Hold rating on Twitter shares and raise our Target Price to $35.