Twitter (TWTR) 25 Apr 182018 Q1 Earnings call transcript

Company Profile

Participants

Krista Bessinger	Twitter, Inc.
Jack Dorsey	Twitter, Inc.
Ned D. Segal	Twitter, Inc.
Anthony DiClemente	Evercore Group LLC
Ross Sandler	Barclays Capital, Inc.
Heath Terry	Goldman Sachs & Co. LLC
Douglas T. Anmuth	JPMorgan Securities LLC
Colin Alan Sebastian	Robert W. Baird & Co., Inc.
Kunal Madhukar	Deutsche Bank Securities, Inc.
Brian Nowak	Morgan Stanley & Co. LLC
Mark A. May	Citi
Richard Greenfield	BTIG LLC
Justin Post	Bank of America-Merrill Lynch
Mark Mahaney	RBC Capital Markets LLC
Eric J. Sheridan	UBS Securities LLC
John Blackledge	Cowen & Co. LLC

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the Twitter First Quarter 2018 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,

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

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

Jack Dorsey

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

key as in engagement accelerated product; better-than-expected are revenue We with and in quarter, we areas ongoing grow our safety outline made our drove pleased I'll especially meaningful of work. these three information quality continue improvements our to and to each made more progress our and progress audience our growth business: we this our in detail. of profitability; and

year-over-year revenue XX% and growth, First, ROI, with the and revenue year-over-year, up first ad continued and quarter in accelerated total execution. up sales revenue we owned ad XX% improved engagement better by operated driven growth strong

We margin GAAP also $XX quarter net profitability net of for million and with second consecutive of the income X%. drove

XX% active year-over-year users year-over-year making of quarter growth. grew double-digit Second, another daily

easier to health improving hold our what's We're approach, and curated inclusive this to to to We continue and discuss the help features, it encourage the more of get the topics, and events right. experts with thinking. ongoing conversation to on a timeline to progress. we in for our civility And address tweets our and Twitter to people and help critical and on timelines launched we're home a make soliciting interest, business, We investing to this openness, a the And people aim of help our health, public new lasting and the new at external affecting video holistic work focus make top back to and questions. news us where continued to breaking healthy our framework it work meaningful, And publicly for and accountable of happening. Krista events growing critical build sports around to throughout committed information the product conversations, discover will the This bookmarks, by timestamps people use help service. follow and of building of and third, to service safety in collective issues including towards solutions increase quarter debate, quality ourselves XXXX. who It's Twitter for we is do progress. right for remain to thing us Twitter, now

Krista Bessinger

for please Operator, Thank Great. poll you you. questions? can

Operator

Certainly.

Krista Bessinger

first Anthony please Anthony, Great. looks our like Thank you. come from Evercore. ahead. go question will And DiClemente at

Anthony DiClemente

regulation? Great. thank and I I licensing has. about it business a then be my Twitter and that Is on one think terms impact that's for And have high-margin think for there are Ned, of Good that privacy, Jack my how business gone that users. perhaps that Jack, should Ned. business questions. And on one you wondering of presumably business about that possible is privacy question data for light has? in in morning potential for about everything would data to taking the investors then Twitter we

I headwind and quarter. showed Letter, a you quality decisions I information other MAUs MAUs. about growth DAU to GDPR operational noticed, efforts, as the double-digit wanted in the to You ask talked in But because about Shareholder

extent I so out the headwinds period broadening a some MAUs to of wonder opportunity longer longer-term compared those over in near-term factors letter to what just growth you. base Thank the MAU for are of time. And as of to the

Jack Dorsey

here. Thank you, Anthony. I with principle want to start our

everyone a fundamental So, our we we serve believe is right on service. for that privacy

to is really continue about. business data something good feel we Our

serve open. in is peers just it conversation, data is utilize out data the public and of real-time that all to that our in make brands, our from different researchers easier so public in organizes are to public, And and Twitter business the data We out our we it. in for public organizations the

here, this over lot services. lot a analysis Department go We being see A out for figure good example of about feel of to a just We technique. A is visible add not on business. any residents. also examples example research. who the We citizen information how some provide we people some Virginia. do data service. citizen identifiable lot useful sentiment And for not of the it's them flu Their provides a this for see the their used. to that's is info or tracking of services think people of products research. use good a of I color of how brands To already Emergency developed Northeastern do personal,

conversations hold ourselves publicly the especially will to we to right going fulfill really feel we business, make data fundamental continue And good privacy. So, around on. that accountable of we all sure with the that

Ned D. Segal

Anthony. Hey,

Your second impacts. question potential was on MAU and

a things So, there. couple

to be Twitter of daily First, drive our usage as focus utility. continues a to

to were MAU have that to million grew were growth the we Safari some X were X a year-over-year impacts we impact consecutive the made million. So, was million That in saw a sixth about fall. quarter our to integration ongoing third-party of thrilled XX% We that couple impact. this changes reported. the There DAU double-digit with XXX from the growth quarter. app

is linger here quarter that was overseas. that probably was to can a will may rest from and be Twitter from in initiatives small that in last removing is MAU. but mention suspicious that. spamming the U.S.; It enough impact continues it. we have This the The something probably we that You to numbers won't accounts chunk talk about the that broader health imagine of

sure to can, GDPR efforts. we information just it. question, over As the to quality the be could removing that affect look that there and of ongoing and we handful time. have right to some and great at then make is should may your that about. One that that. is health decisions spam to improve on a the going accounts for things over it, We're ahead, are and whenever do that's we want MAU, flag to to going service think we we And thing we continue those be time make and suspicious always impact

in it we're decision delivered going not Lite it there those people or better to when to we of provide a was or can app messages. one the so us experience Twitter happen as in period And going that will just flag the to And pay headwinds. that that to comment near are be this certain frequently, we than for meant better or ways could SMS much another, people. benefits Sometimes the deliver so long-term Twitter as things be be a Twitter SMS we messages to could for to markets to wasn't come be to use to that wanted all

like feel both going do for lots more to MAU things like that should the us aren't within DAU. predict hard because talk to the and MAU grow timeframe about or DAU, things These they room than of are beyond. we to base that. And it's still impact them We ahead quantify there's

Anthony DiClemente

Great. Thanks lot. a

Ned D. Segal

Anthony. Thanks,

Krista Bessinger

comes Barclays. next ahead. go Ross our And from question at Thanks. Ross, Sandler please

Ross Sandler

Thanks, Great. guys.

two XXXX. of Just sequential on in I that to mentioned instead is you Ned, the the revenue XXXX growth questions. trajectory more letter, look like guess going

right I run that rate now. amount for a are of exit just owned-and-operated below there. in little you color an So kind it guess XXXX where is implies good a

pipeline, quarters something in of gave guess the comment? related accounts. growth that So, ago seeing of that, guys just a is then the you there in And couple or terms you're to that I is out conservatism top-XXX

coming is right related seeing now, the top from smaller any would accounts color Given about accounts to Thank we're be the growth acceleration or where you. helpful. that

Ned D. Segal

we start Great. is revenue coming where question the Thanks, from. then Ross. can around the and strength about on I'll talk

We've got QX as quarter. this the in us of business Cup that front year. last of facing recovery began early So comps World in do we big in year tougher in to the also it's of global and half We're lap the event of second strong beginning still the in quarter. lots of our a this work

they mix EBITDA XXXX as believe match to guidance, resemble you do really growth when rate talked suggest sequential in that from but may be to XXXX comment from it year. modeling that try than the that into remainder we last I'd from for math continue As our EBITDA that we for We and of revenue on about margin revenue to will will those those you growth recognize back outcomes more the total February, rates focus revenue tempting and sequential our revenue. and you're

advertisers the for the and where were that to really we of strategy take advertiser to improved And with that other last second is that to all from. and great momentum the couple we're advertisers. the question that was the things as sentiment QX top the building example extend talked the in been and Your resonating about has quarters XXX coming an growth QX,

quarter in having see the that to strength thrilled we we this continue with products, So broad-based we're across advertisers. momentum were conversations geographies, and saw across the

ROI better which middle and both a nicely So deliver call SSA are there's opportunity feel the in Twitter. the those largest we well get grew is for as torso help advertisers us to still we'll like we accounts, we for work business, the this hard on smaller businesses where continue and and quarter to self-serve what the execution advertising as accounts where which

Krista Bessinger

And Great. Sachs. we'll Heath Thank Terry Goldman at next you. question take the from

Heath Terry

Great. a maybe wondering, little Thanks. between DAU divergence bit could the quarter. was this revenue us Ned, for you disaggregate saw growth I if growth we and that

I think sort through the against the us advertising were in year. last to you understand of of DAU have been of a going anchoring business potential lot while restructuring growth the growth sort better

how are give products we've how above us that? how mix. And of can growth of really specific accelerate load, is of so seen there that And much DAU advertising are now is of pricing, it much you particularly ad you much if that well driving that is any wondering it growth, a see sense that if

Ned D. Segal

Thanks, Great. Heath.

driving talk drawing be let's bit. two factor really first in a we're progress So key audience that there's revenue made front we and And That about of this with the a will the pleased quarter, but in focused growth. is lots us. on engagement. work We're little things: always of

The increasing second advertisers. ROI is for

quarter. we about, due and things for the growth. a can think front for were increased made that and and and and like Ad that compelling seeing there's this feel to and are down faster articulating progress We CPEs get When than that audience us all that demand, ad than that ways in think made still to – combine buy audience look ads showing talking there at: we do to them to improvements improving continue the you we're wasn't ads; more revenue surface the so out which engagements that was for ago video execution, lots you're driver us driving, customers XX%. are the really ad better the of be relevance we better XX% a CPMs talked leads that platform, video and platform, making continue to across we revenue demand. were with pleased back geographies, across increased now When this formats we're and as still is areas of making the be supply-constrained there grow getting handful to year look that things well. a to you as All audience people or there going to more load exceeding advertisers, relevance; there's are well. still opportunity to healthy more and or you experience their they up can in continues would that that revenue across about advertiser easy of true, there. those our and demand-constrained more we work is the on We the when up are Ad Twitter; so them it we're lead getting but proves on different Twitter. and as improving the sales there. We somewhat at load ROI, to comment that ad point, on the leads a that to

Heath Terry

Great. Thank much. you very

Jack Dorsey

Thanks, Heath.

Krista Bessinger

question you. Thank next from the Anmuth And at JPMorgan. comes Doug

Douglas T. Anmuth

bit on one live FIFA you're talk little taking a But well us and about for Cup comp. and U.S. in Jack, Ned, as for help one international TellApart just little understand XX%, was deal differences particularly more in going for can geographically? can just and the then think Thanks key here what particular? partnerships growth, X% And Great. a is grew the the excited factor up the growth And then, just Jack you the give question; XX-plus obviously the a overall revenue XQ; so forward? about I on new the on color content in perhaps Ned. World perhaps you MAU Thanks.

Jack Dorsey

first part. Thanks, the take Doug. I'll

the actually any go but of excited a things show to stream, product event. one strengthen we us of really lot allows beyond So, the for the a infrastructure just continue we're live that particular about is to conversation

top Happening people's you noticed Something modules, may and of at we've Now put more have been to timelines. able more is to recently Happening the the What's of

team story, that Now of time well interested we So, any you're your signal timeline. event put a an get or a actually we news a particular module in can breaking a or top Happening at the

You a top the a But can in or sporting tap field, event that that conversation and we talking have more will importantly, breaking a into show are it everything whether live we a experts it; tab. stream, can event, the mattered we live be the news around commentators, about, if everything show in people event. it Recap

particular happening in about what's show catch World XX also excited if the to the live we live. particular. partnerships, really most event in but mattered to didn't the what they get regards them are Cup the we show people So, moment, With

and a a people the enables allows they feed, you're your conversation. on It within compelling so exactly can the more really and feed about discuss have point on which We will it. every tweet. start people to going live And we took actually show talking excited that partnerships we Soccer even tweet the single a within it also the see the other some anywhere is time are. Twitter stream, the you share we're live really Any we wherever Major it enhances of goal that it and launched and have that about where live just TV. And what's can People Timestamps, conversation, also in on: MLB, feature League tweet

a we a also where So, lot signal think think event. live more people within started, this particular a to something is mattered great around get matters highlight way also gives but a and us conversation what

everything that's this about excited Cup. around really World the and So year happening

Ned D. Segal

Hey, Doug.

was asked. glad It's international. a Your versus good second question question. U.S. I'm you on

end year, revenue gives backed the or backed was a comps, business, you a out, XX%. larger were was in a that X% deprecated and There's of it the TellApart Since but X% than is as for though, business it is up if you growing XX% business, to We're last room we up which message it sounds still base, but the States, total lot that to XX%. you better. we really to United sense of one, lots XX%. important was feels So of opposed the for the up now. U.S. the were O&O plus It's here. getting States, right remember improve like X% you us mentioned, to that X% actually TellApart United isn't if better up the from the as you you definitely Sentiment better at trajectory referring out that in a to. off resonating actually advertisers

Our improving, the it's execution I'll an ad a relevance that such you of audience. continues a with driving better from highlights the as better business ROI as to and same Japan well. area in are internationally, Video things give coupled the new couple formats and a be larger strength. being internationally is

China in UK the in strength where we and partnerships China performance export performance strength. the video brands ads to Middle of in East quarter our also areas and and market Our as contributed Chinese help ads Brazil well this outside the of were as agency the

of international continue that becoming and from we're So, than we far more not think half Twitter. revenue can the strength away internationally at

Douglas T. Anmuth

both. you Thank Great.

Jack Dorsey

Doug. Thanks,

Krista Bessinger

W. from question Colin at R. Baird. Sebastian Thanks. And our next comes

Colin Alan Sebastian

Thanks good morning. and

all going streaming driven is of directly monetization accounting much privacy, March, much video of or social out still more through is data or that half And and I'm indirectly revenues, particular, headlines more First the events there's any live if calling off, with than the just for of media opportunity live change linearity in given forward? an Thank the I by quarter. business around format you and as that of now notable how went your for wondering worth then wonder during in you.

Ned D. Segal

Thanks, Colin.

from, the line, ad So, was is coming of there that of on this definitely that source imagine. the part Cards, formats the to they where videos Cards strength last through strength much Video saw incremental to as the can new quarter. like in-stream line apps and still strength Video we feel are of where real people we video to two and not and a App definitely parts But are you the about advertising driving click We strength saw we've as to talked bigger couple as and only from Website ways from engaging Twitter quarters, websites. revenue to get

that. whether Twitter, advertisers that good ad to of over come of a through for for revenue get on others like as drive have lots to their in-stream or opportunities video in So, through the just higher feel today, because there's we it's feel up it's front more through about us formats We customers engaging may percentage a more way opportunity we time. that

Jack it to privacy. Let turn on over me

Jack Dorsey

in ourselves them. simple, We continue the our of change we pushing everyone service their a we sure data on protecting haven't linearity around to policy giving around that seen controls we're around the people just privacy new to any our and have that seeing make yesterday privacy easy immediately business. We released and

Colin Alan Sebastian

you. Thank

Krista Bessinger

how the the reaching plans is take Thanks. It's of you Twitter. Great. are of here have she is audience? use greater the asks, we'll Lite account from that progressing? for Twitter And question a next (XX:XX). animalethmatologicos there the from And what And

Jack Dorsey

try not but to get to I'm good you. a repeat from Thank to going the always Great. question Twitter. handle,

of markets. gets there, growth growth we're base. and out this small with more our double-digits what's DAU It's example one So, off in it progress why it's there largest of saw Twitter past example to doing minds, Twitter We're pleased In what but reasons of able growing our as people's roll into Lite definitely hands. our geographies more grow a it's we're quarter. internationally, the five ten a an of definitely and we great of Lite the driving in

Krista Bessinger

Lloyd Walmsley at Great. Thank next Bank. our And comes Deutsche you. question from

Kunal Madhukar

question. I this the terms actually for Thanks new much are yesterday. One as is taking seeing you advertiser in like-for-like And products, Kunal I rolled sharing Hi. you on A whole if one. out that like-for-like This what are couple for How just that of how with you and be is CPM the is of of on that would third-parties? up. could. privacy Lloyd. is trending? policy in That So, interest? the understand products, a But terms data pricing

Jack Dorsey

of terms first services, and from the personal that do public not different a governments, from our customer we business citizen is that on have part public Your for local parties. used the data data research gauge is But, analysis third our And data particular in we in do So, lot in brands, researchers. policy, our sell sentiment is that Normally, of data. of any a and so to Customer can we this insights question extensive the of identifiable Again, governments little so information we people organize the who information. terms bit a peers is for Know the in again, in around the them.

Ned D. Segal

on question a pricing second was Your like-for-like basis. on

to as but there about basis. So than It like-for-like compression more like-for-like, CPE down some it video just as was well headline, was XX%. was a CPE mix a was shift on

it get to when of relevance better good to better CPE rates, a based to such We improved which the the better we're and as is it as advertisers audience. video feel couple bigger the click-through you continue indicative ROI that continue delivering formats on really about against with

Kunal Madhukar

you. Thank

Ned D. Segal

Thank Okay. you.

Krista Bessinger

you. Thank Morgan Nowak question Stanley. our from at next Brian And comes

Brian Nowak

my questions. for have Thanks Great. two. I taking

ways visitors progress have examples you point conversion And talk the advertising to second on ultimate in couple stick? and had the side, to daily still is The of in really you I bring make tangible you've a improve or about platform efforts the good solve? more how first about ecosystem of successes you And to friction to could you need then these visitors and made user on what daily growth. ad one user growth. know one think of them the past talked some you've biggest I many you do business. on the into the to the guess

As one think go budgets, the improve share or big of ad getting are of or two to product areas ad XXXX? biggest improvement what focal we throughout you to as about constraint a the bigger your points

Jack Dorsey

Hey, Brian.

as continue to to and So, time, spend majority we really add to positive a relevance people timeline we results. notifications, the namely where see continue their of

being Twitter. So able a is stickiest definitely of the immediately timeline aspect show to relevant

We particular, interested happening can something same with And get interest. looking been they're we in can have seeing niche a because we more a or particular that, the better, value out within they're graph the do or and the service. within networks the a to them get our network faster what's a and interested in not lot of from topic connect People at within to that there. onboarding we social world do particular and come what benefit they not us social are In we the do. social

learning, refine have tab or we this more and today right ones continue to iterate biasing we a of Been before we of people get Explore towards to of most particular notable for show push videos them a been Now experiences topics. towards and multiple to live onboarding, the you at make what build news. And more if work, are within it in number and it event. module, right within it the Happening the try matured timeline, we've We recap for service sporting this. we which conversation so a in multiple sure a live into were be that out has also interest much particular driven lot could mattered a event. most that a So, event we live of right breaking the or experiments again, faster, be into have the show to we have and lot – see all middle also the building that relevance, could product sort the but of to we we based you if doing a that or a and live test, videos interest is right the came event the we're right may notifications. a of quite they video, that a soon unable their you'll event of and tap And that are around then, machine excited deep-learning in to lot follow around the can against it new that experience lot and some catch top of where it through The and quite into timeline which, entire

around do more to we more the higher the remove So, interests, we benefit. friction the there, for the people get

Brian Nowak

the side? then on And advertising

Jack Dorsey

forgot your Almost Sorry. second question.

focused This we to our platform. core improving through So, ways. ad side, continue core priorities that sure we on are in our we're terms the the and in multiple we of ad the get. more One, improve comes making for offering better performance just measurement, stronger the

look online we benefit from on and match we of ways to accreditation channels buy products public opportunities third-party new serve. to continue focused We're conversation on tapping as Twitter and well. continue really and lot demand video ads specifically we're ad on to into for that and with it We the a to differentiate our focused new measurement

Brian Nowak

Great. Thanks.

Krista Bessinger

And you. Thank next our question Mark from May Citi. comes at

Mark A. May

Thank you.

speak think have there? then what that that impacts growth from that how room Japan the could Thanks. such that much was was greater it secondly, about now And You in you total the ads resulted improvements increased more monetization of I on of hoping yields how impact than ads and XX% video that noted and you the in and strong mix to you the video are the quarter?

Ned D. Segal

but earlier, covered it. this let of some to I go Mark. Thanks, me back

lots monetization there's the more case, of half today, execution. the than second revenue, opportunity we increasing better formats, the now audience, like formats but still that's both through side, and better we is feel quarter On have where of so here been the new that from ad video it's sales through through through relevance,

it's continue we against think that or described. are and those we topics, video, more events timeline penetration whether ways the live drive of or can All video strategy broader Jack the to of where

has lots feel that of mentioned, still you a you there's it on advertisers and couple better we When opportunity and the to it be as to pricing the backdrop. end as down. ad stable So ROI clickthrough there on a pull and dynamics, CPEs that up continue engagements rates, can given with like video, impact you CPMs that pretty healthy and with positive delivering

been our the If see really we coupled sales It's Japan, execution It's we're been and to a drivers. continue that that's there. also to we've the agencies audience made good better sales performance you business with the made really there have with. growth progress second seen video-driven We've led the look progress side. that we've and we've at with pleased there ad largest been execution strong really strength and pleased our on with really market market a and

Mark A. May

Thanks.

Krista Bessinger

question the And Rich you. Thank Great. from comes at Greenfield next BTIG.

Richard Greenfield

give throughout you and opportunity at you're after DAUs, you trouble last Thanks Hi. question. Wondering basis? progress the in give quarter you a a quarter. on proxy of DR at two, advertising And the on is doing then on I talked how a what of any big as could had you've for which to you two-year we an as an your look think I XXXX? on update the the that know seeing us to quarter of of could for per-user Wondering as kind spot for Thanks. ago. that you spent I taking been could us what you up sense months whole If any and forward go XX% there for of side of around Is is signs market continued color look stack engagement, overall somewhere XX if platform provide? is accelerate early direct think real Twitter response one you XX kind of about time

Ned D. Segal

Rich. the to first I'll Hey, on there. time new report take spent. part Nothing

Twitter continue as use the on a base we're folks We basis. with be of the that we pleased grow on the to platform seeing who engagement daily

Jack over direct it turn me Let on to response.

Jack Dorsey

drive about spoke back, advertiser example Video the to last our see this direct step interest power the blending awareness which performance ability quarter video this with Website another a strong had we a good just take the quarter together, to of and and of is to combines Yeah, objective. both we and so brand Card, so response drive

things So platform it's to doing we're needs two the come overall these fulfill how well. the together and looking on at performance

Richard Greenfield

on maybe to just up the spent follow point. time And

the about to of As to someone in as pitch why weeks other out more main dollars over is the think you platforms? message Twitter shifting be versus of you move advertisers, your next New York, couple should what

Ned D. Segal

we watching brand that's with to we front something come And advertisers. their the that about. video things. Twitter, a then CPEs the the rates products, described. by on differentiated in are opportunity get DAU they're lower and somewhere better engaged we awareness audience; prices they're see timeline, they're and topic row It's as deeply like them or about really place It's shift where and just we're ad second it's engagement Twitter really to and while quarters screen feels in that's few an Rich, growing offer the increasing resonating. mix customers on or around indicated else, event we talked of through something at It's down. resonates six a moment It's their getting that measurement, double-digit clickthrough of Jack we're or growth the rates performing as whether as improved it going engaged the the

against advertisers next advertise the that and coming have they'll You really we mentioned coming in weeks few content opportunity on the up NewFronts the the the about to be Twitter about to talk excited we're year. to able

Richard Greenfield

Thank you.

Krista Bessinger

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

Justin Post

Great. you. Thank

to the transition. on video up want follow Just

And revenues that anything as off, how the without pricing the a expect us but second, to quarter lot you still to for thinking look of your numbers of business? revenue that second formal for on video you half with have you about how second levels in revenues your you do that point? Thank guidance, half? And And outlook go do quarter back post-GDPR? you're at are giving at the you. your GDPR, have that like factored you with it impact looks helping As then the

Ned D. Segal

Okay. Justin. Thanks,

First on video.

a So, still we think of room. lot there's

video that, the That's show to the XX% by against ad front it front continue time, advertisers lower that so formats, increase videos those to leveling new the percentage but and ad XX% audience of feel of ought as a increase we'll and, pricing ad like Twitter perspective, here. minus offset and more time, a for to through way customers ad that there's drive therefore, From have in ad other get trend of a lot as engagements. over than room to formats, a in us mentioned revenue existing relevance from been as to plus in CPE order of that's dollars. We some extent to now You their formats have continues in the off. bigger CPEs to a indicated on in video our improving

we're of our the drive as video pleased with revenue continue and higher of ad in So, it really percentage direction to work with advertisers. we'll a

GDPR and around thoughts revenue. about asked you Secondly, our

EBITDA we've given the impact GDPR early is around into it our EBITDA to the guidance everything thinking a But the back, take going second margin and for you too is have the regulation that predict if So, we've incorporated business. and quarter. to step on else that

Justin Post

Maybe from Thanks. you pricing of still room around Do I think here? lot up. increase like-for-like could a video follow to Great. there's

Ned D. Segal

think down, advertisers. deliver and to So, Justin, and see relevance. formats opportunity pricing better when we we couple ad is ROI come can with better better it that we like-for-like a about to an But

about as on in a to higher think talk as ROI we delivering do context so as advertisers. to really may advertisers so much and we pricing to great thrilled are coming about driving an pricing Twitter, it don't down has format it auction We the of

Justin Post

Great. Thank you.

Krista Bessinger

comes And you. question Mahaney RBC. Mark Thank at next from

Ned D. Segal

Hey, Mark.

Mark Mahaney

questions, Two morning. please. Good

over on much want pretty next that was platform caused privacy How you're the call actors sequentially? sequentially investing has concerns or any internationally bad out growth spend for solid. that data by markets abuse to out Thank or MAU that about growth that the talk much needing misuse platforms Do concerns platform by there? how this you. overall in third-party, MAU secondly, particular drove of or given year First, you just years? of security, you and or countries to spend And you could security to couple then increase

Ned D. Segal

Thanks, Mark.

pleased think about indicate areas an investment of be When five quarter. this saw us. asked that platform breadth of the four were and where grew Improving audience breadth be this in then of continue we defined. would DAU revenue the that our We about another. Improving that across markets earlier audience And largest of we with engagement around we sales. grow area we head broadly past platform one. saw way health MAU. We would mentioned and for you security, is ongoing best markets the will improvement And to this quarter. the XX double-digits that third. So, think will I is engagement about aggressively products to count be the investments audience year. Driving probably

take think a we'll If that we you letter the to back mentioned expect count do head about XXXX. around XX% step XX% in and to count, in head what we grow

hire once; the people you at can course the As imagine, year. all over gradually all you them those don't hire you of

the from you thinking don't And both the of team of have burden in XX% with where and hiring we that priorities year, about a a with. full leave are front we to them the larger opportunities but count the full is of will for we and year the started the to expect And XX% to year perspective indicative so, us. one hopefully we're head than that a how that's all of the

Mark Mahaney

Okay. Thanks, Ned.

Krista Bessinger

the And comes next at you. Thank UBS. from Sheridan question Eric Great.

Eric J. Sheridan

taking Maybe two. Thanks questions. for the

Going to from saying quarter to de-emphasizing something new talked they between on family gap on Thanks, how out the formats can ROIs a and guys. can pricing on January question With medium to little other engagement I close the either Your CPE over about partnering comment sense back with bit in more publishers but and more pricing, lower develop long-term? or and you've or to that would any of Second that on know to appreciated. give side called but you Jack. video the closing? you that that Facebook sources, is for you in capitalize formats CPE shift be earn sort be the content might gap product on advertisers that early for be working content us and would about the was in friend and possibly the would emphasizing referrals? publishers trying

Ned D. Segal

Eric. Hey,

about perspective. just because it's down and than not about the a of from that, larger strategy delivering are different just your around audience, that more part when about the think it CPEs pricing question first the is framing the as coming thrilled we're ad a format think are of a On the for I gap think our embracing question going we If closing, better on which think different ROI people engaging we opportunity about engagement with is focus advertisers. we're an a to we and of how

you to the layers And have the that in of really so, to opportunity. order consider other what think about drive

the over on of to Jack Let your me second part question. turn

Jack Dorsey

Yeah.

job people the and our job is informed. core then, past number over really core that on, two Eric, identifying against and keeping one, So, we've number years, focused two, it building

building we that against that and against sure we that, we the So more into make do. products services and more lean better the we're that the

service, happening keep constituents They Twitter important global conversation it a place world. going around on journalists our out most anything informed what's believe People to use always topic is a people a against what's and or And of from and with job journalists. have also to publications all news, local our news, the with but as figure release interest. and as an We service certainly with the having benefited core Again, that. our particular do Twitter newsworthy we naturally their within articles, on a source. as carry see one are through

more particularly with topics, relevance experiment we new continue So, add product our through to as towards learning learning biasing and the anything as to work, And as as around noteworthy make video deep much we put we in and the continue against benefit interest well. benefit. to machine live and more on that we going stronger well that's relevant, we the conversation to and as world,

report able core yes, that over lot few focus So, been we on job, we of years. to the the as we've benefits past to that definitely see we a continue

Eric J. Sheridan

Thanks a lot.

Ned D. Segal

Thank you.

Krista Bessinger

it and John you looks that we just take last one at have from Blackledge Cowen. time so Thank like question, Great. we'll question for

John Blackledge

Great. questions. Thanks. Two

color half you. platform. or advertising this question be offer video if you of on total wondering video about you us point, on Thank the the second XXXX? engagement provide can update revenue advertisers if and/or And in ad growth platform the advertiser number with an on give could of just XQ the So some at then would on

Ned D. Segal

John. Thanks,

on engagement, trajectory content the of video there see on progress video investment pleased that they engagement of that and strong We continue on be and those content with live continue the So on in on video be to areas three all we ads both the making with to we're us. platform. the described, user-generated Jack for

opportunity. you number terms total couple the In just our of strategy things nothing I'll of new of advertisers, remind a and but of report to there around

been could them resonated working think The first that to about for as the the and hard we well year really accounts a platform, story Twitter, that them with their us. the working really advertisers got connect gradually really other year. the bringing that second that on is customers with the well ago when to help the we and they of half been out tell to We've started to largest about that's ways

saw nice against more also there. more help in nice become of Promote millions and we think advertisers of that more we've but like business very growth product in and about of to those on One with feel talked the base the see self-serve got get will off to which us investment It we require past quarter, is We but small do this we opportunity work there's over Twitter. like order product We the feel of in them. businesses past from from opportunity newer an small time the on millions our there's businesses small order is products Mode we've platform. to there the that's to opportunity indicative a the Twitter subscription growth

John Blackledge

Thank you.

Operator

this concludes management for turn question-and-answer back to to Thank session. remarks. the like call closing now And you. today's I would

Ned D. Segal

Thank you.

of this same call we initiatives. double-digit our support, time and growth we'll July We Thank XX see consecutive our DAU join health on quarter and your important Revenue market invite another place, the We you same for for quarter made you growth QX recap, profitability. significant GAAP your all progress to to second our time, drove quarter. progress achieved So us of on before made Twitter. accelerated. open. earnings you We and we

Operator

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

good You may all disconnect. everyone. a day, Have

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