Twitter (TWTR) 26 Oct 172017 Q3 Earnings call transcript

Company Profile

Participants

Krista Bessinger	Twitter, Inc.
Jack Dorsey	Twitter, Inc.
Ned D. Segal	Twitter, Inc.
Anthony Noto	Twitter, Inc.
Heath Terry	Goldman Sachs & Co. LLC
Douglas T. Anmuth	JPMorgan Securities LLC
Colin Alan Sebastian	Robert W. Baird & Co., Inc.
Brian W. Wieser	Pivotal Research Group LLC
Richard Greenfield	BTIG LLC
Lloyd Walmsley	Deutsche Bank Securities, Inc.
John Blackledge	Cowen & Co. LLC
Ross Sandler	Barclays Capital, Inc.
Justin Post	Bank of America Merrill Lynch
Youssef Squali	SunTrust Robinson Humphrey

Call transcript

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Unknown Speaker

Good day, ladies and gentlemen, and welcome to the Twitter Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. I would now like to turn the call over to your host, Krista Bessinger, Senior Director, Investor Relations. Please go ahead.

Krista Bessinger

for QX thanks conference and everyone, joining earnings our call. Hi,

a CEO, with opening Segal. to COO, had website our this us we'll Investor have before last with on Jack Letter We to questions. published Shareholder your today you've morning. Ned We remarks Relations CFO, just directly our Dorsey; a the our prepared read call and Anthony hope quarter, Like chance begin Noto few

And addition our from take and year be with that take questions reported also from asked as for materially discussion Please future outlook using Shareholder comparable During except the non-GAAP measures any results call, to the non-GAAP that, would And statements on statements call the as QX website in those included submitted should date questions this directly statements of Twitter for be measures materially. the GAAP remind a we the it call Twitter audio and Twitter And could on today's discuss should forward-looking statements is with a certain the few XXXX an available not also performance. cause Q&A, in a our forward-looking our of required we like Also based making its directed These our us for and to contemplated website. via an on replay I from obligation are not operational Reconciliations differ our this Questions participants. GAAP and financial substitute to everyone of strategies. turn entirety are are be we'll Investor could any be like this The our to to available filings financial to forward-looking would to to considered over will conference look will in and Jack. of call via this as call @TwitterIR update full will information on #TWTR. by via We to at most differ Letter. that results finally, be we of hours. Relations forward-looking disclaim this results our call plans measures. our results. being webcast and SEC in to Actual indication intended a factors during by also as law. our such

Jack Dorsey

Good today. morning, everyone thank joining us and you for

our a We profitability. key we record a Before three take highlight progress I grew growth revenue progress our detail on audience engagement, good you. and in for to areas more want business. of had few in these achieved things. a return bit and and We made questions, quarter outline to a I'll made

First, are our growing. engagement audience and

as as grew daily well sequentially. monthly year-over-year, active Our usage and

Importantly, the this markets. in broad drive said XX internationally, and top States our the with last United growth And based, product growth. to we improvements was in quarter, continue and engagement audience of growth both majority as

increase is an make making relevance easier Our work to impact. and Twitter

was driven accelerating Growth in we where made profitability data improved and sales our strength video we a our by QX. team, growth. consecutive saw strength formats, continued in quarter third ad Second, And record return business, response to this from we quarter, execution on and revenue achieved third, of in progress our direct growth.

This all and improve across execution our our delivered prioritization margin and We adjusted reflects continued our strategic to margin profitability to-date. highest improved our EBITDA priorities. GAAP net of disciplined

safety in isn't taking priority week, we're We're published made sense growth addressing engagement of teams. the enforce enough, and is how of safe size a we and shared the enforcement with This calendar growth, rules In we're this a them. addition have place out work number focused trust ever we to know audience rolled work, updates, made time of last a from We perspective. we our this for and in And revenue than through planned way. January into profitability, stance more our XXXX, and a we level abuse policies the upcoming on more just hope product in this increased making and of the and progress this product aggressive we the a And increasing updating and of Twitter a an XXXX. we've in along our it urgency. visibility builds XXXX, our policy, first We everyone.

with Ned, over Finally, I'll along to we're call excited first to words. with a for to our COO, Anthony, earnings joined have say CFO, him by and his our him. it us, we're also few turn

Ned D. Segal

to and good happy with I'm be morning, you. Jack, to quarter the everyone. here discuss Thanks,

to said, a this day. we our engagement Jack Anthony to the every more taking make people Twitter making return to relevant on with we're questions. I of and hands record forward quarter, opportunity We in got and great progress possible that, And grew, people's audience to profitability. growth, us service more to look a As put and many your as achieved revenue Jack, ahead and as

Operator

you. Thank

Krista Bessinger

And Great, comes Goldman Terry from Sachs. thank first Heath at question you. our

Jack Dorsey

Hi, Heath.

Heath Terry

with to we're Thanks, least or the restructuring see there Great. that of a more, where is if saw you growth advertising next advertising point reinvest And feel margin we start is we given with where then getting guidance point DAUs? technology, doing also that comfortable margins seeing, in products, long-term to want growth business people? more with to, growth you that you're to this also, level quarter, a the for aligned marketing, growth, Ned been this in revenue your quarter, the give Krista. going impressions, little sort the more in of you've it's extent in could profitability your bit to of on a just there sense some advertising whether that is upside at the Curious and us goals, about

Ned D. Segal

long-term Anthony made we this take great and will change there's question the first thinking, second to and margins, the progress our On take goals. quarter I'll Heath. one. Thanks, our towards no

at years base where, and a of expense hard the of where we point as our expense last grow that's will after though quite invest couple are We come a priorities. bit, down an the against base decisions the over lot selectively made

improvement, to So, see to revenue than margin cutting come from base. more the it extent likely growth expense it's you is from the

we said, that you we're want make that appropriately opportunities sure the As to we against see. investing

the side Let it me ads. talk to to Anthony about revenue turn and

Anthony Noto

Ned, Thanks, Heath. morning, good and

you address your it. we figured about so, our it about and how So, a an feel on update return growth, and I start will before what's overall, to in give progress I good be we're the making revenue towards revenue to doing want growth. driving would And trend see we question that to audience a just to growth

I'd progress January guessed to would making that into today. like First progress the back we send falls really ahead about feel And areas. the have good we've made. in message that is where I of three We're we're

for First diversification partners, revenue. is execution, value for to of I'm our specifically and and advertisers, focus on going value our for enterprise owners, our strong value content value.

growing larger We much have It's a It's consistently. audience. growing.

are have We have better and performing products better. lower much that prices, we

equals that ROI. All of better

one Let of those one. by me one each take

they is and importantly, users, our they so to grow. partners, to We've Jack by confident six the important are quarters in tough in know Having investing product platform on growth and a increasingly content going advertising mentioned, to continue is as changes, factors. in side, that addition driven that And other growth with in growth. that's comparison. audience double-digits, of had both the against quarters active up for audience the daily an growth is last four First, solid really

Second, our prices.

year-over-year are is basis prices cost mix Our engagement. down more basis. measured shift, aggregate, on in driven by prices a down like-for-like meaningfully, value. significant but declines They're importantly, XX% better lower by audience, a year-over-year per Bigger than on

that We good we eliminating better we advertisers. some products. performing painstaking our went Third, didn't of the in win of we our didn't we think were could think portfolio through for have products that process with,

also advertisers then like-for-like And have really performing invested rates teams focused two a our with we click-through in video last, now, for to of is differentiated in our our a team those strength our have more and portfolio better Our a our things partners products on the perform on communicating products. of higher prices, ads, platform. Right products. year-over-year value. we lower The our audience combination Bigger better basis. to allow lot

We four really differentiated products. have

launched in its One Apple in used which quarter, lower Those most we prices, ads, the fourth a of which that products, recent by was is combined and performing campaigns. has differentiated bigger Video helped. view audience, Card really better a with

the on that feel that take going would for about we're good precipice that, making real while so progress ago, the year growth a made. to progress mirror seeing and we that and and to to a growing, to we talk we that, And we're it And start was we our like we're of audience improvement. had the a the fact and about direction revenue feel

Heath Terry

Great. Thanks, Anthony.

Krista Bessinger

comes next Doug from Anmuth our please JPMorgan. you. Thank And at ahead. go question Doug,

Douglas T. Anmuth

Thanks wanted for question. two. up taking the there with follow to I

TellApart First, been throughout a mix to if revenue a ad It's excluding last nine growth, – talked that Thanks. sets more how CPE. think in Ned period. same going headwinds And the XQ, – about other start up Anthony, triple-digit the bit roughly grow of A NFL? little and video, you've you happening you down, in about you about can then, the mentioned. think when you and stabilize growth, the can then qualitatively Anthony, think, just can XX% talk you also talk forward? conversely, that But And between and you you there basically XX% I terms talk XXXX? shifts, in the of you whether into in impression DR, each gotten from you can in And kind of like-for-like engagement does lot or quarters.

Ned D. Segal

Doug, a start, about little I'll bit in. Hey talk fourth Anthony I'll then first. quarter it's will the Ned. chime

do guidance. back that just you margins, we EBITDA guidance guidance EBITDA I'll We P&L. for that So everyone will do revenue into to the but we other math give give remind people recognize don't of and parts and

QX, believe reflect Our prior go EBITDA it of to $XX when are and of half the of of out TellApart meant you'd And comps back we tough year. just point made mentioned the most million in of you in of in me recognize – let ranges million periods, if million that he million second do to QX, $XX outcomes. to in the you the in was to math Live Anthony break I'll and likely $XX is guidance It compare what that for were TellApart a you. in $XX QX. headwinds July, it where

that, December and as election November happen that If will some of quarter one in also repeat from decline X% last in in that revenue. of the we'll said outcomes with live get Football, too this TellApart year fourth Thursday in puts quarter quarters, will you it's Having out, little that you are and don't there happen just the Along where presidential ranges couple revenue include of X% you more, our saw into a and with most there's the and math call fourth things And the last year. takes you us didn't play The ex QX the there can to the a the themselves a for up this growth around imagine, decline we saw quarter to then to quarter. of back end quarter much could next. ground Night early you the for which TellApart, of QX remove are would revenue of quarter and lots fourth for do and TellApart. to

it's to growth, it everything revenue make to we're that but working we'll you better doing when happen. So, believe to hard predict return early we're

Anthony Noto

we're fourth talk question I'll then to quarter, about how your question. and Doug, about the setting XXXX up and So, CPE for

just to goal to is we going every very we're headwind everyday fourth We're about working quarter that It's overcome well-positioned. really the do to that. Our execution. and have,

able been increase product in really Live to portfolio the that content. of we have We have

a it's now We just it as have in quarter, to fourth and to as that to international, which into not initiatives leverage had making industry recent the pre-roll significant quarters, and is improvements. broad-based. product over a hope video, and versus most we we're on selection this We that go relates domestic. XXX the continued increase prior in in quarter, events product number It's of the video is progress just the addition

go well our growth. think it's can and growth to execution technology. partners. processes our about of diversification communicate those all I take through do into to that to back we we're we get going overcome we're starting we're to to We focused it the back I to like revenue. on getting and and really So, headwinds, on What will went to XXXX? focus value continued as to people, everything

We have the products. right

to It's people great in of right that and each the are sure I'll it. making doing having the numbers our clients, that them product regard, have our give one But about on we the partners our and making team the on that, and and conversations you so, calling right support We understands doing. value. calling right works, on is progress frequently some it's before them what that's ground showing enough,

in our were XX% advertisers fact, globally the top XXX quarter In year-over-year. up

you U.S., So service in the layers, to at down X%. itself, XXX up peel advertisers the growth to the as a layer that XXX top advertisers or you so see XX%, onion next globally few start top will two up start

period XXXX time than studies, do proving in in we team's It as As had self-serve, our it it, XX% both communicating of third-party that. was custom-advertising the QX combination studies a more XXXX. in the investment we'll this and quarter same in of we and well measurement as conducted relates more to value

we second of diversification talked The about factor revenue. which our haven't is

Our then basis. Data are a we that We a to online our And it's this advertising Enterprise have category. business business that It's self-serve accelerated still growth relatively through That our returned Solution a margin third growth the large of optimistic as the business in business consecutive given not about business. people there's opportunities very year-over-year a quarter for high well. product is because quarter self-served platform. on lot

areas, have in right to comes So value making for a really the really down equation we of it given progress execution advertisers. number strong and

CPE, As yield, product CPM. click-through engagement. as An it it of about nothing the say what is CPE as per CTR, CPM this. XXXX think CPE, more We so of we I'd effective to times and to about CPE relates combination, think than the relates rate, is a effective context cost in

that's been because quarters, yield growing glad point it's about that revenue has relatively think the back think allow environment, stable context the we in CPE demand CPM to (XX:XX) the now and against remain will and platform, how three drive in volume relatively existing growth. competitive last all effective it stability and equal Our stable the the it just that's else to of will to to we're the get incremental reached us we

Douglas T. Anmuth

Yeah, you that's helpful. Thank both.

Krista Bessinger

ahead. W. And Thank question our Colin, please you. Great. Sebastian R. next Baird. comes Colin from go at

Colin Alan Sebastian

a of guys. Thanks, I couple questions. have

wildfires of a family, wanted communication note just I First, personal on was information for Twitter to a mention real-time and source very the so that a useful during here, that. my I appreciate

the off, one most in of wondering terms were factors users? and questions, couple driving new in two I'm first the a increase compares factors the spent casual with more cited You important of or growth engagement? on how the In what core And in the or more usage wondering in the then, Explore tab, and time particular among release. Thanks. timeline, specifically, DAU

Ned D. Segal

Colin. for question, the Thanks

meaningful, vary and in any QX all all They're period. product growth, that marketing. benefited about: contributions in their levers Our given audience growth from organic we and talked three will

audience improvement compound should engagement, to and over Our time. changes drive though should and in product continue they

Jack the specific me are driving it that to about turn that product to changes we are Let talk making growth.

Jack Dorsey

and a the it way for broadly, the the mention you tab. and bit saw interested sort utility. Explore to thank of I'll what wildfires. topics Explore use touch is same (XX:XX) the interests. And around We relates in more us of a the on, organize little to we're during for

with that an This with very, some about experiments and is that care bring area We're some the experimentation. best accounts lot this. You'll out is they find matching just quickly topic a find very Search forward. there, learn of going that interested of within as to figure and interests Trends. which you'll find more we you'll there, you'll we and see then timeline, experimenting And topics of modules, better might you of playing course, you the into We're with tweets people approach. launched, infer the and what Moments, and more, be their see in, we right which those

One is, is we we're on which just Happening sports. focused the about What's module, today of things the launched excited Now

better are call would We last to selection the daily And so see and for as around we're serving sure baseball, continue show the focused. to we're discussion seen back in to and not the off top a in going gets we'll personalized, as night. and your through app, this the when now right the you interested results, instance, happening It at direct our conversation more and more you're notifications. as conversation, to and what's both if them do continue they're we out the when game to where we job informed, results on on, timeline believe add through better have they're that always personalize keeping impact and board. the it we So see of that's continue making and active, a timeline across also people comes Explore, get has showing what's only we but their that and out and more the in Twitter

Colin Alan Sebastian

Thank you.

Krista Bessinger

Great, thank Brian, comes from Pivotal Brian Wieser next go Research. you. ahead. at And our please question

Brian W. Wieser

Great. Thanks question. the taking for

Going and can growth? broad rollout if continue of revenue some incremental sort and XX% sort if versus And trend if then, into letter, the I to team providing customer separately, data for could success to you that's support wondering data driving extended talk extend the in the do talk that add to just wondering licensing growth you could customer you lift. MoPub I'm was about of of licensing. about new think between you top and the you mentioned X% you think profitably your segment, how other advertisers support plans going

Ned D. Segal

Anthony. start data hear licensing, from on I'll So, you'll then

but our licensing continue we out third we licensing an us, we offer, to bring We're to our five talk and the with pleased out we adds accelerating like of visibility our don't opportunity. progress growth expand for do important it's front growth. of the we lot top around continues to room licensing, straight we the that product one you that advertisers? to On both that relative that feel focus Anthony, to about as existing and be saw relationship with the of customers, we area and there's data quarter point expand MoPub, it a data to there, that to break more in really our of data customers, us, want

Anthony Noto

not Yeah. clearly, And question top just you advertisers? your it restate relates your I second as it could sure question? understood Brian, to XXX I'm

Brian W. Wieser

that Sure. letter There's new advertisers. in that provided you've support a X% top a the success note says customer that of launched to team your

spending just extra the mentioned if wondering to their the providing thoughts rest that, extent top further to customer to that the contributed You a to if broaden would success of team already – excess was increased or a company. in hear. advertisers success certainly But plan of I'm well the this level, customer around just you XXX growth, of team, be useful that sort this that

Anthony Noto

point. advertising the self-service our XXX, is just And or customer channel. and top business, different five and for to our comment The about our a success so clarify different and your top partners advertisers self-serving a advertising Sure. into letter group it's none fall of

they're trends different. not positive showing but both they're – So they're

Brian W. Wieser

Thanks for clarifying that.

Anthony Noto

side for strong really team business side combination and the I leadership Let really has did on growth. a incremental the two the a working and second. business The from both grow in those from the our of bodes well self-served importantly benefited product third business on the for quarter. think together talk me It about

competitive be think turn-it-on and an has a do advertisers why not we advertising the product, We type millions do we reason had advertising peers the is know, of you to forget-it big we of channel potential a that. not always self-serve As on product. our like have haven't

product so good we're area in can if see to And we market investing fit. that find a

learning a of on you new use to $XX for continue So we you unless to relative made being for a do existing rate onboarding value the early. campaign to success revenue much get but in gets very but with version cost our to we've all subscription and We advertiser our it launch both we've for advertisement its follows, back you, you We have get conversion new higher that average made The I formats in other last impressions also the innovation improvement. more product a is is investments as so want new and market a better X% innovation advertisers the product more promising that markets, customer a our things for machine technology business new just then and get XXX% easier team. don't pick area that a to use team in account investments of you. it we've of the set-up addition mentioned campaigns. leadership returning our started formats. want to drive result of It's delivered fit. customer advertisers contribution That tested from you product per that an higher cautiously. driving We of team, subscription the and you warranted. in and shipped what and would thing on so that's a experience don't are top invest and overall drove It's But new our and like adoption relative better ad for incrementally the advertisers for made we've which to product that to initial literally Twitter. signs to mix the add we'll and say, that product to done success, I you'd profitability to business And it one onboarding, it's

Brian W. Wieser

much. you Thank so Great.

Krista Bessinger

you. Thank

received feedback video you how do have live account on And (XX:XX) Our any next he is it? of asks, video the any from improve come comes not that optimal. discovery TmsJmo question partners thoughts Twitter. from It'll to from and Twitter of you have

Anthony Noto

partners value different important strategy just first that a very into year. it because question. for business to Live think is Our provide understand it's It's our And than the anniversarying I your and plays its we strategy that competitors.

video for strategy that reach audiences there. that last clear, leveraging for very we've in advertisers. to content The had in a specific on content pay television incremental we about delivered strength is owners though the the things are they about on not more idea help it's combined strength have watch needs of so, the get. been drive selection, to it and Twitter We've been right we've meet an happening a everyone's the that's our not wouldn't their about And strength all at to to that Live audiences. personalization into Twitter leveraging reach can conversation audience that be television. those people we existed passionate in talking is to and someplace our one the are to else. already either was advertisers we home faster, that to that their are extend it's we discussion the to to they make that already timeline pick for even more more that otherwise And decade or passionate exists doing it's platform that content able being content world with video curated our extending drive was timeline and partners the to on It's and So an people topics do the prove incremental reach, over think

on has really in such worked and a not at increase why the for owners strategy from us, replacement well had And strategy trying from selection that strong the dis-intermediate a is year-over-year a It's the all. that to we've not it's advertisers audience. basis. content that's So or

that has about measure how the significant QX. As best the news advertising? just quarter in real we is, what domestically in want? entertainment. are we want they think there. saw it. each across for delivering of in really proud it We value growth in versus terms that discovery, to sports, I had the scale XXX answer delivering of audience But users value the and so internationally the relates content way events growth up and are done question question that that in was owner specifically growth XXX And they unique we And is we selection product that we've and and the had team individually your the to that's question of We the deliver saw the we and events

Krista Bessinger

Thank you.

So ahead. Greenfield our comes please at Rich Rich, from BTIG. question next go

Richard Greenfield

taking the two. question, Hi. Thanks for so

XX% First, gave just had your reported of up were through the you update XX%. you I last on the DAU front, July that think when you and mentioned QX, month DAUs tracking in

indicate kind of the So the north months. of growth that exited quarter would that you back XX% with in two

that about, live discovery whether morning, video finding to that it's a surface whether piece Just I that go be going but a back aired QX? as know that video that two-thirds of Thanks. how against working it you back did correct is content mean, dedicated going a even you video, a I or like mean servicing that in that about whether content how end care a come trends you're live or value back or was this see up lot to then video video I'm those happened live great you you're there it I to the there's that or drove there's just, and a just, comps in quarter. you're on to question If beyond video that? up want just discovery. the second video? less still this tougher wondering, of And has because ago, in specifically of is us general, much there's in that I'm or the I interested that in anything live tell thinking anything can video experience about weeks curious pick so notable you few

Ned D. Segal

start DAU I'll then broadly. Rich, about Jack discovery on and Hey, talk will

call directional. to months takeaway break earnings was on that were at or comment XX%, QX the to the the I So wouldn't you meant be try to want we exactly really apart. to

Go and growth, contributed subsequent in given I will Jack. ahead in periods, them marketing they product, any sense and continue quarter. their makes think don't we period. to expect they're contributions higher it all DAU drive And this vary Although break organic generally all as to past meaningful to out,

Jack Dorsey

is Twitter. In way are terms to across the adding more thinking this of video we board personalization about the discovery, just

at are tweets So or our tell video, tweets right in right and media images, applying learning machine us that interested format some deep something, efforts time. if carry tweet; tweets infer, single really you biggest some we and that carry for carry learning to text, every delivering explicitly sure you're you the make we're want some to we the

a is video, and that video is image, sometimes sometimes want really an well. deeper even that go text, and Sometimes that then understand is to as

somewhat broad that So, we are to in matters a what we we're something make from what feed being sure perspective, people, interest and can format thinking that going more that their and is something based is that really agnostic particular. about is to this delivering so

making want do So at your into this lot experimenting you're and them. lot timeline, tab. the work a this looking we're But a blends in any lot find also, Explore so to sure a to we that easier, don't matters if people exploring to this, have make that to what

Richard Greenfield

tab? is see because standpoint, good want the Explore won't need ultimate show the me you'll to the in AI tab use goal, enough, main that to from to Jack, that I you be Meaning even an what

Jack Dorsey

correct. Correct,

something in that is through. whatever you to goal it that format comes and right personalizing so we're getting really Our delivering matters this

Richard Greenfield

in you that terms against where team and of growth is the And would size, AI say of kind effort?

Jack Dorsey

learning in in had lot We've learning, our AI of strength particular. and machine discipline, a deep

product. core of we've to year-and-a-half, it the applying aspects past the really been For the

the all good and the But hiring, and really team the application for look feel continue confident feel and we our of we really team. these we're expertise. about to in size of depth the I in But areas. leadership our So

Richard Greenfield

you. Thank

Krista Bessinger

go Lloyd please you. Thank next Bank. ahead. comes from at And Deutsche our Lloyd, Great. question Walmsley

Lloyd Walmsley

one Anthony. guess for Thanks. I

talked better You the product, audience, advertisers. for growing lower and make product about pricing, better work

see you spend as to advertisers who seeing Twitter, are product prices? a after back these coming how wondering, period better and advertisers are away, back lower to trend So perhaps you from coming levels

Anthony Noto

averages happening different the say want of a I'd answer by what's I market. so because one you don't to kind give each in market, What is, it's mask individual

XX%. the market. Japanese an the do strongest second It's It's as revenue take market Let's greater We than our there. example. disclose

accelerated advertisers It slowing, look needs of we on opportunities And this on and in a of is as meet because we we advertisers. our products have a by-product more team advertisers Our sell for growth in number Japanese broad quarter to approach. basis. those see of approach revenue the by-advertiser and to what slowing, array spend the year-over-year accelerated focused growth of the at our a

competitive, been And so branded the DR a of video rest things really increased are The in of is, audience other that in which are brand a our did fact, we contrast and is has a products by historically is market, business, and prices there. in really The quarter see strength which the of recent because have uptake to largely to and market key our Japanese the of in advertisers, the business, one that video is products we targeting and is starting our really strong. now we're the product. in of market, product one those big we most Japan a better Japanese complementary is it the

is market products are I buy, broadening that broadening three but so be just it's the the you, they're that products the and market, valuable going I'll and advertisers mentioned. valuable those because dimensions in tell about Japanese each they're different, the And across to

that focused price. products are the like they that's the advertiser, right the that on, What available buying? market And we're the ROI? each And products Are they So to level, approach right we are for then right the we're ad SKU are to can say deliver they purchase. taking. I

Lloyd Walmsley

Thank you.

Krista Bessinger

Cowen. question Blackledge from next comes our And at you. Thank John Great.

John Blackledge

Great. Thanks.

a couple Just questions.

Could I of basis Thank if the year-over-year detail, did just in then DR on line. you improvement perhaps called a format grow the in and drivers think more DR and advertising could you. response MAU discuss, change channel of maybe top and change the driver the explain out as the the now? was you direct why a reporting in

Anthony Noto

Sure.

and On we quarter response in mobile the direct have question, application did strong a download. direct response

new success apps. space, in games this our accordingly. with business uniquely a the have mobile stream partners into we did we've of of in download But that and also mobile (XX:XX) fact app and given penetration global have can we're drive This is the and the new good help was quarter We had of our allocating scale fact several application quarter back one haven't reference the The and and had so that on the download strength as mobile of that Map we've much them the revenue launch had the the resources we're have. in strength entrants Map significant Historically, we market we're commentary scaling in application we that products. the in letter. we as from video. liked the would (XX:XX) of particular, In that an a saw strength increased area

Ned D. Segal

John go for MAU And I'll you. into

an had this XXX that a million unadjusted the realized very for the and that grew on change number internationally absolute to million over absolute over X to strength During And of adjusted been XXX million. note numbers basis in MAU it's a base measurement quarter apps U.S. million year quarter million we from million It's have not that growth should of past users in important small included that X that the really since million to included. we MAU rates in third-party much. XXX a historical MAU our with X we or don't on to contributing X service

any that include by as calculation. users third-party this You'll the in be affected does not remember DAU services DAU of wouldn't

MAU Twitter. affected like served the again there that a MAU. polling a change want by It for MAU that including we we on I'll guidance don't addition DAU is is just just aren't While to wouldn't who weak as are third-party revenue them. point to that some Safari so I typically for will in tied our don't And seasonally be impacts this. third-party out affect note interface auto DAU QX MAU, or although have apps change give to

John Blackledge

Thank you.

Krista Bessinger

next from Great. Barclays. question And please Thank Ross, you. go Sandler our ahead. Ross at comes

Ross Sandler

Hi, guys.

questions. two have You

on one you're channel. the Alpha So ad the the programmatic new programmatic in in you letter mentioned that with

business partners and is So you've the on, this what success worked you on strategy And level, the any that what new kind et licensing, account second acceleration the within with I the into about just do be the expect XXXX. past early then and price there, driving Can this between in increases versus talk would terms data color data Any Alpha can this there? consistently licensing something on you of in talk new cetera. about think color growth on you XXXX of just and question different there is seeing the overall that you're growth Gnip the stay you. this to at and difference helpful? Thank

Anthony Noto

Sure.

think about we've revenue days It's want and about channel it's emphasize video very digital programmatic So new we us. and a those demand. I demand bidding outside of your into real-time budgets standpoint test. One talked prioritization of new opportunities into to about as early very, is tapping take We've talked a let and channels tapping me for from question. previously of party social.

being a display, The environment, have On opportunity supply environment. perspective. second today. real a from there's sold, not display that's not in competitive some demand and opportunity We we're opportunity RTB constrained demand seeing in we supply to into we're tap really the those budgets that's that budgets do constrained budgets. could for perspective, us premium of think front into be a tap our inventory think incremental not We demand. a demand premium is third-party We against very product

third-party our RTB, inventory tap into we in think inventory lived quotes to the owned this through I monetizing programmatic tap demand we existing So and emphasize out into more want our Potentially, inventory. in "potentially" can syndicated operated. of and sell word

rationale and from so a a that's TSPs early you and opportunity pipes one early, that We're a so now initiative. in. worth is. real expect that's partnerships we the the Alpha. we detail technology. number any very testing that the of this It's But it's out real really even rolled negotiating I'm it we're foreseeable real for haven't future with giving investing And don't and impact Right that's only because the how behind do think

the As not your do it use ability acquired Solutions to that have types content at relates had think the it relates it other to of Data to focus things cases, four direct was right over relates user use Enterprise was for expand outside use relates marketing. business data and opportunity understand case it just data the to right and actually to to there's the the a media, and buying time second as question, of sentiment one It specific an on but analysis as sell delivering to we case, to that as Brandwatch years our use right one ago. to

value because do seeing the business partners. in to that reason data And opportunity growth our with we're creating opportunity existing partnership the of to type from on incremental we're the but we're our drive you're results fact fewer growth customers And is is going that The expand. instead why of that channel and and for We focused bulk haven't customers. more. of that started strategy into strategy in of land a higher and focused yet, currently prices to enter is more the that products biggest to

and so opportunity and of current that. an fewer just still of think more of strategy, driving partners penetration more very about that early it's We not today, expand driving data data in opportunities the And opportunity in partners they front about in partners stages more yet. to results significant shown it's the hasn't up spend invest our also but we're execution usage partners them. in through a that at there's the there's the broader in And so

Krista Bessinger

our Thank And America. Great. comes you. question Justin from of at next Bank Post

Justin, ahead. please go

Justin Post

A Thank of couple you. questions.

about how ratio you. have year, next growing loads? do where when I new you already you growing. you're First, to And think DAU you out? thinking talk spent could seeing there about that? like-for-like ad again you about room bottom Are ad you but, do discussed Thank are in think advertising And more maybe just feel then, loads, you've you pricing obviously, how similar thinking the user, time content? is at about MAU per engagement ratio a Can with increase and

Ned D. Segal

MAU; is two-thirds come have grow that users as way the well, to be one Twitter on we another are our growing every which or of definitely – one But of ways to base is come days. existing users continues case, not MAU DAU who that X come and can X to MAU DAU. there's inside them, in I more a made of after DAU that than DAU grow the alive, think to DAU. and we helps that XX new was into sorry, think MAU, to been it comment first the turn earnings to Twitter, that million So XX% July that to them to call is that like new less back I of referring for you're users There's that million way Twitter really which about day, the last

and opportunity On third we to resurrect point that back Both like to at to effectively create are And and we been spent, opportunities And if ultimately them create like have one were example to one that that I'd look helps an bring metric, Twitter look alive. that's at DAU, to at are opportunity then to there's look that for users never DAU, be the first is engagement time it. way the to us and MAU who before. to them would other bring Twitter. so to the back to

too. the that importance But with any of we're to to making we're want them focusing can that it talk pleased much ad progress others. one progress you pleased you are we're load? making. probably give tell, we're ways too the and Anthony, do relative on other it As the by would look at definitely to There there about

Anthony Noto

diversification. the is I our I'd more said have on out our I value return then just to advertising room into It's not growth would into and execution rely do States. also focused was and also we upfront, and answer loads. really do data point the on United that areas diversification say also that on diversification, ad dependent not business. we're and in ad Put in globally also Earlier Sure. load, But self-serve

environment, that constrained environment. our in given are product consumption you are load, initiatives, works. But supply of dependent that way constrained been not that many driving ad think if on the video have not a those So a about demand we necessarily

to is diversification, without of more that of time real even So, opportunity we're why an have which executing supply, the a programmatic we reasons opportunity one lot against bidding. sell the

CPM stability. the like has of said pricing, three CPE by don't driver and call, of like the platform we the of at stable, think combination tell for effective a In we continue measured advertisers, to rate to earlier look to per of I we rate itself measure stable. a be yield to be allow click-through going by that's pricing the up powerful basis, basis, it and cost on We combination lower prices last quarters terms want engagement as in been CPM, will relatively down at effective a click-through able really is the like-for-like a for pay to relevancy really to will I by you, to equation get and on going and see. look better

Justin Post

Thank you.

Krista Bessinger

from account boost the Great, of beside asks, thank are data and question Twitter, comes innovations in Goose who revenue? other you. from designed that comes And pipeline Francis it the (XX:XX), our you licensing, live to next more video can talk about

Anthony Noto

were around valuable it opportunities looking done considered. asset involve a be of it and the that it, TweetDeck user. looking to really we of distinct are the for us. business in It's that first. is not the to here couple a that fulfill concept are corner, we that being fulfilling Sure, the at that were at, platform of number there valuable ourselves, there's asking job media for not type around do tested these to we're but subscription was is the create have and of really because product TweetDeck. And that a they're for a monetized. quarters question can just consumption a want testing emphasize on And ago, we a that currently A I we after

once want what a do create first, can have business we on deliver then, to us for to hire it. that, they We we and around

very a the And that greater I by experts. can value, early. clearly And concept We've increasingly, charge case use It's only if we doing by add that And so, to Twitter so relevancy its world, being experts, media communications and a used has and hired expand the is in in to the from by more is as standpoint? users way beyond and had TweetDeck tests. a marketing done impact mentioned. subscription just its

don't that highlight get you publicly stage it. ideation to moved really I in I comfortable about, really the talked because haven't want you give one telling where in really was that beyond of rest and that don't We just we of stuff I we to feel But phase. know The ahead want example. so are I ourselves. it's

Krista Bessinger

you. Thank Great.

So question. I question have comes for And last we time think SunTrust. at Youssef from that just Squali one

ahead. go please Youssef,

Youssef Squali

Okay, questions. great. couple you Thank of A much. very

to R&D and read to sales in on to the a this level top longer just XXXX. OpEx particularly QX need character engagement you've seeing, the over what marketing level Can of we drive and you that spend business, the On then into spend of speak down we're side in you that sequentially. growth to the for were basically the the enough that saw Is both on few to playing And maybe need get for you limit with last you line? been get early the quick question Jack. Any users months? where Thanks.

Ned D. Segal

Ned, things a couple on side. So Youssef, spend it's the

having in reinvesting expenses go fourth the we be go will you'll up selectively we QX the couple marketing hires, this both that the expense hard they people and that over hiring obviously expense and sales actually in head trends from The selectively in but last or – well, the attrition timing QX. bunch, lot to see get at the probably decisions the team. ought alluded will didn't P&L impact point from and in good here. the improved a lot is you base some and come you up a I head QX. attrition earlier after of great such up to and and we're of down and went noticed in count count Expenses So the better of R&D seeing and are the in call notice that we years quarter hires had a We of new as and onto where

to both see going the period as can because dollars, and days drivers to of next. those of pushed cause us the QX selectively opportunities invest the there of few are the But in are we in from around to in an want because move two move another, one absolute invest we and where basis there that to business. to that sales directionally, is those areas one get in So OpEx can marketing continue front increase that will to from some we are especially a on spend absolute quarter and

Jack Dorsey

And bunch instance, opportunities were German month, last And we're patterns saw languages, always for for because of as we make to certain their shared where in for everyone. we looking people XXX Twitter tweets a not could thoughts constraints. character abandoning easier they in fit

we how make once that the answering So we this for want question thought all. were rigorous about to we and sure and in about expanding

more watching to the service find maintaining the to sure and be very and as we month early are make that of we want promised too impacts time want our post doing of sense learning still testing doing the this and how observing that we're we open we world. why overall. are speak to voices I also maintaining One our we're happening do in that by and make it. brevity, we roll we're make be enabling and constraints. in that to data, and sure share ago, what's and our real the is sure understands right that sense what down share start not we to frustrated things But showing so of what a we're now, everyone blog to It's tell and

with their So time share on actually and really in the they what's going out what thoughts can get real thoughts world the on.

all few the in data and next to forward So we look our of sharing what weeks. we find

Youssef Squali

guys. Thanks, Okay.

Operator

that today's I back Ladies closing concludes to would like the and gentlemen now turn question-and-answer remarks. for session. to management call

Ned D. Segal

progress more see faster, for job revenue our our our it. growth for making focused your achieving this for make and we'll It's And We Twitter use good you all to record relevant you. profitability. audience thank we're safer your Great, Thank made on you everyone. time people and better And Twitter. and support. and the and quarter engagement, growing service who on

Operator

program. today's program. concludes Ladies participating This and thanks the in for gentlemen,

Have good disconnect. may You all day. a

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