TWTR - Earnings call transcript Q4 2018

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Operator

Good day ladies and gentlemen and welcome to the Twitter Q4 and fiscal 2018 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, Vice President, Investor Relations. Please go ahead.

Krista Bessinger

you. Thank and our everyone call. earnings for thanks morning QX joining conference Good

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based results will and to us measures. certain these filings to that on cause with at We available forward-looking our later them Also the take update disclaim this are we non-GAAP law. during a unless required look our for the discussion statements factors making differ. we of Please information could a by today to any SEC financial call, of as duty discuss

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Ned Segal

Jack. Thanks Great.

Monetizable just to monetizable DAU have every disclosed to success. to related best we the for on then formally ways on its growth is are year-over-year get say any which measure Twitter.com ads. few apps show We to Q&A, DAU, to are our our something and referred and we I XXXX, people we and new able people which that that DAU on into and by Before valuable who a growth through given disclosures. are or day a wanted access want since us Twitter our provide Twitter day DAU and to believe words Twitter login

largest are might companies, set We seeing share be comparable to not a disclosures our may from be includes of people or that changing who you expansive mDAU of many We goal delivering disclose other comparable disclosure more day metric you companies a from Our that reflects to ads apps. considered broader and to the one our other current value align DAU our to but monetizing we usage. goal our people want that to could. stakeholders Twitter of every metric external around on to wasn't

number will quarter, as disclosing to absolute in this of the international addition average for starting markets. since U.S. and mDAU XXXX, the have mDAU the So be both we we sharing in growth

audience be disclosing forward, QX of As discontinue metric mDAU our MAU after will we will engagement going and XXXX.

operating profitability guidance total for of instead basis, on provide adjusted income on giving We to revenue will GAAP margins. to guidance guiding ranges GAAP also move our EBITDA and

access the of campaign investment because things does on advertiser return an Twitter, change Advertisers are the audience most is and One most you to because they mDAU against today. our the have advertiser's on in which have could generate new impact come conversations. not Twitter high valuable a wondering we make impact about information This when the they might how or their receptive disclosure objectives they decisions objectives. to we be

increasing on through tools. ahead, and innovating advertisers with better look ad compelling relevance deliver and measurement formats value opportunity see to we ad for more improving and we As huge Twitter

ready this of lead questions. we and demand. All your increase to operator, that, better are for can ROI With a

Operator

[Operator Instructions].

question JPMorgan. Anmuth from Douglas comes from Your first

open. Your line is

Douglas Anmuth

for Thanks for I taking think the two, questions. I both have Ned.

the whether in not in help understand can about in for expand million, are we you $X thinking more just you there it income And like about? think down operating $XX XXXX? XX% Something potentially Is year-over-year? something the be about margins thinking First, that looks second, specific Thank guidance there? then I growth you us How may will million GAAP expense can to which XXXX. you. XQ, you be talked

Ned Segal

Doug. questions related. Thanks Hi. Both are

a how out talk and little about growth guidance. me the in Let the expense bit that plays

expenses context XX% of look were GAAP years. up if back expenses higher because we cash XXXX, of remember, cash levels you if down look way last X%. came for through stock-based the grew couple the at XX%. from you comp expenses the So about fourth over at quarter, But

bringing So headcount a in XXXX we XXXX. base are we We XX% the over headcount we into course year of with as the the began added than grew larger expense gradually year. about

we continues XXXX to our take we to a from the with that base same we one into how had and a with in it will larger invest resourcing the XXXX mindset So against expense same as priority and both perspective. prioritization priorities be number continue

operating results base higher you expense to of and today. that income guidance there the see that So the continuing invest is

As is expenses with have result on income lot gave revenue left five a that based the into both information the you can of play. The imagine, revenues. we the to operating we and guidance quarter the quarter is best guidance weeks got just of that a

we hard can. work outcomes to best will deliver We the

If I went those comments help, the the just Doug? you that you back at to point the shared Does in look full-year I prioritization I with I through. that growth, expense think that and

Douglas Anmuth

expand It in comments XXXX? helps. more potential just to on Any margin

Ned Segal

Yes.

margins, deliver about over health on of of can about service believe people think is a the look Twitter time. when over So who decisions, horizon. long about a use periods think that We way our time we to One it. time. investment there the our that number long-term of We of decisions growing think at make you the ways we is expense couple with periods long

we will margins margins in And any so decisions And long-term at to those just we be that. and to The deliver revenue hard we investment the of one guide output an given quarter great deliver over of we time and an to work that time decisions output will be period. in are revenue going outcomes make a the will the horizon.

Douglas Anmuth

helpful. It's you. Thank Okay.

Krista Bessinger

you. Thank

Next question, please.

Operator

Your Walmsley from Lloyd Bank. Deutsche next from question comes

line open. Your is

Lloyd Walmsley

Thanks.

a development about last on the up guys a side and focus question, Following engage diversion Doug's quarter talked you bit health on to side. on of

one a budget us less related more budget? you outlook be OpEx was And Or from landscape. the to talk in keep and you I cause give on for maybe meaningful So guess in you What the is then XXXX wondering growth for an to is if terms to XX%? in would for the give Can guys the XQ World out? be event mind XX% the us product? than you And reengage for of you the about how core second the can some of of kind conservatism in grow effort Cup what OpEx fall the strength election spending might aside sense guidance sense might can guidance? that, the And cycle than modeling just and the that a engagement called in much to the in how or monetization?

Jack Dorsey

Lloyd. Thanks, Great.

part easier and making also invest and all about to is prioritization. have is we change think the products change going about think a people invest are hiring. people where our to of which are across platform. the those There second. to to Twitter be see dollars priorities. we that continue sales We revenue on in the conversation And it will and but we No we their is no of priorities of to we health first the for think So the

changes to there. thinking the no So

In evolve the where we so priorities we on about may can terms continue have pretty over the to that. headcount in last thinking more or dollars The always of consistent year variability thinking but obviously OpEx, we is expect go our those been the and fixed. on

try in less to But to about around and based dollars jerk that not things with near-term are OpEx fixed. outcomes. other budget decisions those we from another some horizons there think that we long-term one so And period on the

all the come they is over events Olympics. were all given strong when frequently launch will that when are most bring they what they things is grow in connect and in thing will to ROI on true them. advertisers comp occurred those for events them them Cup, it and again help that they at It's find world, see to by job trust more get so service where you about those come people during events opportunities are the deliver year, we to want in service election, or not to so back same may longer will to There won't our The these a and product and help people's You earning XXXX XXXX just the XXXX look frequently happening. presidential with that and that they Twitter all a to to that And come a look help over asked Brazil back job World events. can want they what's the again. the it's interesting, so happen have in in involved would we or to when Mexico, events over is we there XXXX any or our find if at look so the election to We amazing around stay as see back interesting an them more there conversation. and them in them them

Lloyd Walmsley

Thank you.

Krista Bessinger

Great. Thank you.

please. question, Next

Operator

Your from question next Ross Barclays. comes from Sandler

is line open. Your

Ross Sandler

Hi guys.

mid And Thanks to new revenue questions. it, that mDAU disclosure. quarter XXX and and is looks us per Facebook's this, two that per rough the the in to It XXXX. the with $XX. like, Just in our $XX, ad around math U.S. on bear somewhere operated owned call DAU for compares

So here. that, ad of plenty I guess, to suggests you got runway load have increase from

looking ad is around DAU the next think years? So the second few quarter the in about in the do given particular. then over I U.S., growth load how just first even guess question out And X% you

XQ, quarter, revenue owned see growth the of do in operated you XX% your guidance? what kind owned on the and first and based ad Given in operated Thanks.

Jack Dorsey

Hi. Thanks Ross.

when question load the a opportunity. see levers On we is of a We the think monetization, lever. ad lot about of

provide help in a about we It the have do many Twitter but relevance. invest advertisers with still more But that public ad Twitter path and audience or conversation that as they out use work wouldn't quarters on We to forever. improve to a room whether we and have us. yet, accounts probably formats definitely improve when four to think excess don't on in them be continue there advertisers to who Twitter our much in think as ad that should the to they a small of the advertisers We trend grown not we of We that to for those advertise have the to grow with of are purpose path about everybody. realize front serving businesses largest world millions revenue Twitter we the already. continue to to the don't use That's in see row. continuing of look

like growing the hard do is to So we across of the do, advertisers there. supply with different outcome just of we user and surface year, ARPU when constrained across the when The We platform, there areas times we more platform. feel than work look are that the lots we across look we constrained leverage and feel geographies the still against base. demand

So definitely still work there for do as us is to well. there

was second that how Your plays O&O question and about out.

movie product see really success. what's lots we or with something new, advertisers new your and whether are and are and We about giving the overall We feel most the is really to The most having guidance audience message good the valuable room Those conversations launch connect of are just of having happening. that customers revenue. us Twitter the are connect to being with of being advertisers. a with continue on a we it's receptive place to when still place and with they resonating

Krista Bessinger

question, comes He the two take Great. Rich from Twitter. has account And Twitter of you. Greenfield. It questions. Thank will we from the next

He app QX his discuss more up seen direct response/performance your around ads health is, had second with of revenues in in Japan advertising? to the Japanese The could And then install you market the XX%. is you Can great the progress Japan. has lately? feed first XXXX? one XXXX a in question talk

Jack Dorsey

Rich, Twitter the Thank right. question. All for you, and

on First direct response.

business out great when they have of of they to a been have will our in an as helping areas game more that those a they the people parts new We and And really Mobile launch for broader path world part the couple of a a we one know they want of be about. a great application response people come next important a it the of also that has new or to It's investment app launch over Twitter apps. downloads place with advertising opportunity business. place opportunity see a is to a where XXXX years. new direct

fourth world. there largest real in we quarter. and The So a MAP and helping format advertisers our there year, with to year, like the largest video a customers with have is advertisers the market. Japan great for so year It's as agencies. our found to with those Twitter on more Japan or XX% the over in It's ads people in second with around still feel the the had XX% agency ad work us realize concentrated success market. a a last all do We and really resonated potential Japan. but a connect finished up terrific their

well. in we our Japan like as really there front also us opportunity So in there that pleased remains is are and performance with of feel

Krista Bessinger

Great. you. Thank

Next question operator. please,

Operator

from comes Jason question from next Oppenheimer. Helfstein Your

Your line is open.

Jason Helfstein

Thanks. ask questions. two will I

upon guidance. there that net out Is the at any you that the of you why things range? changes There the CES. pending middle the you low What making if low product first revenue high? about? be guess that that? I And different Thank most specific the quarter just more can are Is anything Just was around to the seeing first excited buzz at number relative is lot specifically Maybe of Jack. reason then of or expand first end end you. come kind there relating a on are to to will

Jack Dorsey

Jason. Thanks

excited product on individuals product is and do we past better are experience first our a lot areas So really is a a actual the One create the three about. the time for less and that there we There is have consumer can the health. spent within that side the can on focusing of party in service infrastructure around much experience. time we reporting on the on lot

some people I this see not we in is experience very a hard So leads conversation talking conversations. in think but the of We now the much replies is participate in opportunity much, timeline long there tier we It's controls the believe make We about. And even and over give what ton follow It's is believe about, A health we exactly. overall solutions see which that a what good this excited That help what's friction too us to Twitter having growth only itself fact and on big switch a the it and better. make the about we are example is issues. will expecting them. released Twitter this with right second some very weren't come an experimenting of There more providing increase experience core experience is but of think long-term what's vector We to conversations much generate really of not believe into conversations. within it. now difficult. something is at we are Twitter the that to our how lot of hard ago. conversations. this to more happening, did looking to conversation We and the People a for that can to do faster pretty people differentiator. that people that is to happening, think are and

They people have have interest will come follow where of to those completely. they surface because fully. interested conversations believe putting Twitter of controls is much And we the just something. deeply an looking to do then finally, more So interest in conversations, them anything network people to on Twitter so else. we participate inspire giving the are want all more on People that also than more going believe context simple same but the at what's

that for from the is service what easier change And So profound forward all going interest way interest, much the work of a of will related a to interest. events much, breaking have easier. emergency to to the continue express really all you news Twitter finding might situations think around be be. an able We an accounts, to majority towards make being you market or San us the have can in accounts. biasing dig the don't Warriors, anything those follow this with and interested to within the means wants or particular what relevant app. And the with you lot we And it's world in connect local immediately, find onboarding Francisco events through to following when be you first think we do have you your conversation so the much or and download or that's that Twitter should this might to long-term that interest we

experimenting been this of So and to launching participate experience really have much advertisers we here it and enables our in much And it on pure around. a allows that a richer better canvas for but work ton there with more Twitter well. is as a also

Ned Segal

Jason. Hi

Your second question the around was guidance.

just the to guidance about total First, talking in change it the is worth revenue.

the confidence that might range, range into XXXX. got than now. a before. a be to explicit we backing we the tighter business have and head Hopefully, backed the we of our of you that The reflecting are are more as instead into range we to trying So is explicit have health little

visibility based to ours, that notice the play play we have set business focused year imagine, the as forward. like is when for budget out outlook we left of a sometimes remember of starts still is in you our brand point As and that from out. more early gets lot a to the on the quarter today there can

deliver are get our as to we when range just give we information can so we the time best call And when at as the year. great the working and and we outcome we work quarter throughout guidance we this an the with have hard

Jason Helfstein

you. Thank

Krista Bessinger

you. Great. Thank

please. Next question

Operator

from comes question Citi. Mark next May Your from

open. is Your line

Mark May

Thank appreciate you. I it.

key first Just the high-level engagement ARPU ad growth, investment? there areas focus you contributors and areas been secondly, Thanks. there? and like conversion discuss curious teams contributions of inventory can Just getting pricing for been characterize the any Twitter or what's can of And particular investment have key incremental of the improvements? will growth? drivers product be sort year? recent the growth or Are that What from you the this drivers of of yield or more then the within hiring kind of

Ned Segal

Mark. Thanks

So first the business. opportunity what's have about think where we success driving things. on areas same seen the few throughout question we on a where of still these in the and XXXX We see are And ads front us.

The is first relevance. just the driving ads better platform doing in job a

help likely more people advertiser show interact relevant or them the or more objectives. You realize ads, they watch are to with their

as replacing XX% more been get dollars to dollars is relevance to continues engagements Twitter a also rates and the driving The which second well format bring engaged ad video where better to card quarter. to is suggest a those card, were audience. A continue might clickthrough with interaction have are with result way and the of those is ads up hopefully but better shift we were more more both newer up deliver Ad ad growing mix XX% that formats, that the video as a relevant going this rates. that in more website and that compelling seeing. the before people Clickthrough app video it incremental

things. constrained When for to than coming result looked but that. to do the like buckets on conversations balance dollars I event, I talking whether sure just product talked to priorities, couple supply have where that if working going big make across platform work Twitter topics it's that we better or people the continuing they The we a consumer about events don't more go Jack the both feel about interacting the conversational. more infrastructure show a talked else health still a a sporting still highlight election, and the are and of to places something investment as conversations would event that are that the that take or the good that speed hard But right see see first. to address experience about television to us and we make happened side hashtag of are with side, them we about Twitter helpful or as can compelling we think that advertisers is on and or demand all guess those for a at around the job and around might on where there the an to that supply look way the they them at they recap of bring and that may be we latest revenue things with a tweets, constrained up demand whatever doing Lastly, the the where into topic. most feel everything we more an

We think do we easier. like to that as business, it feel measure the move area there I enable earlier mentioned help of us MAP better, to advertisers an investment where to important is for the about to real in for to things test work broader platform us also ads faster, us

some So I of that areas the would highlight. will be those

Mark May

Ned. Thanks

Ned Segal

Thanks Mark.

Krista Bessinger

Thank you.

Next question, please.

Operator

from Your Thill Jefferies. Brent next from comes question

Your open. is line

John Streppa

re-engaging users have Brian. highlighted Hi. question. on the Yes. This is you users. Thanks Twitter the not also the lapsed John past, opportunity for Streppa, but only on new for for In

lapsed users relevant Just noticed video? of any as Thanks. content, you behavior with more the focus you on in back to curious especially especially the servicing if change have are platform, coming

Ned Segal

people help every about ways value Glad definitely We John. to deliver two question. and the get Twitter from day. you Hi asked think

are world, time for is to of That interact anticipate they learn a MAU to to for there that opportunity is when people search come when and about XX%. happened a suggests about they a and or that to find continue lot DAU in about find looking the help to room from link to come learn who to of time, from Twitter it past. to who because Twitter want us around. So things ratio them also on haven't the have having get recent something they the on the somebody, people Twitter to when they before them the day. every for, to for more to great the be have part is world helpful there end what whole And other other us Twitter, value of to Twitter we up might or experience come for But in come they a

look to of for important continue to people's are looking really and still we of top just at us. we get be healthy there. them find need help the they continues They lots to when they trust. are coming have what be to to funnel, earn both When areas it We for opportunity So Twitter.

John Streppa

Thanks. Great.

Krista Bessinger

you. Thank

question, Next please.

Operator

question from Merrill next Justin Post from come Your Lynch. will

open. is Your line

Justin Post

Great. Thank you. couple. A

just that's to issue? to talked changes. Twitter. user? techs pricing just tell Is showing just them it usage is is First, will positive Or reach aren't Jack, easier it direct leave Second, to ad per users them in on timeline A up response the the you we strategy and how mentioned the use to Is for out the story? lot it or just a response that channel the making to there. yet just it advertisers? Thanks. I of

Jack Dorsey

Justin. Thanks Yes.

opportunity And that timeline relevance. context give to to machine saw years The we result both. do see in the was us was learning pretty depending three it as engagement. on affecting and we control we something look apply about are service But to made the shift deep and learning an a us more significant people ago also more again to So that more for for add we change we in. some great did

and usually. the missed we it you to helps So a recap is great that ranked service want the away when you are of you and find timeline get from everything

to real you dig or that's all breaking time game of and metrics like event, through how people that go inclusive what change. folks tweeting reverse fluid news may in is and very, we in go a cases, watching as up our a that the see if from And we there Warriors a all Twitter and from, enables saw in of the you follow. all fast you tweets are you missed metrics ultimately care to well. switching in is. some it And the up very chron middle You about everything engaging this, to like have conversations seems But have simple that of don't how the from see

will help also the the also not most terms Twitter. of to both is but only that result some that there growth within engagement service timeline, on out for the folks we people we relevance think a the we new can in give controls service So in do more of and into the get the lot

Ned Segal

Justin. Hi

question more objectives pricing hard if with If we on work us. campaign. another pricing. a out campaign, if Twitter, those will help and around to ROI relevance, against second they better then put will a a do as ads come advertisers a lever. out if we get up about on the do the to or one was about if and Your we come realize good engaged that sort how we advertisers, audience, And think bigger better deliver and they their back formats, is output Pricing we auction an larger their

engagements, clickthrough rates we delivering which forecast help higher strong X% ad the at where But were to those advertisers more. and last this for they that look it's So the when we are like over really with signs and them higher continued year a have you for pricing. you back we what the come feel success keep coming down CPEs balance of ROI don't done will quarter down, those past

Justin Post

you. Thank Great.

Krista Bessinger

take Thank you. And the his from next can account improve question Twitter. onboarding? on is, give And to comes the we roniethologic. the efforts question you from color will some It of us the

Jack Dorsey

for question. the Thanks Yes.

us. think that area a an of lot we be to to continues for going growth onboarding So is unlock

to use healthy of see world. Ned people we A lot funnel. the coming Twitter As a with it desire and top the still what's happening in have mentioned, to to very of

match that first the we do is when on of things an service don't to people with come them well the interest. One

the might a are be where that We are would they using or lot they indicate what not of signals in. interested

event And some to be recognize them away those can that get sure enable for work having of we signals into use get that at are that are whatsoever. right basketball or them instance do and any so into things might experience they looking that we an without immediately we making conversation into the

you our an the into and letting around conversation related would accounts. or accounts getting much So is that or remove follow into be those as a from to interest then an as various find timeline a following and experience those event finding to on and possible meaningful actions you work principle immediately and take here accounts

go And think more see of improvements we been is So there a to a consumer and lot focus continue growth. of as should and here the we a it our a should lot for has we team on. months lot opportunity

Krista Bessinger

And you. ready please. for Thank question, the we Great. next are

Operator

Next question comes from Sachs. Heath Terry from Goldman

open. is line Your

Heath Terry

for be you of of mDAU year in year, just Great. thinking a you growth Is qualitative sense, related of Thanks. Ned, to growth we health in issues conversation I increase users then bit mDAU year. either a ahead? we the much obviously thinking in there course OpEx sort driving are has the could monetization? am about events should this if a last the And are that comping safety characterize as platform be trust about directional us and regulatory growth look wondering just how that sort would you as the how give the that that with against this some year, and talked many earlier or versus even about the that of way think about issues of you Jack defensive over investment or about should around of would product that and areas XX%

Ned Segal

Heath. Thanks

about against like is we the revenue priorities. really perspective same lens. we feel feel making coming are of really this with lots a of feel profitability to we work in year a execution delivered like and good in But still about first there XXXX. record from those We do the investments feel We don't On our defensive strategy. clear any year are question, that we the the

want think around is one it at the look the from we that same lens you to the So make which strategy. and just sure about consistency confidence of I

evolve the asked I You it's is an And I one just are and would on from it's where just it perspective, not through investment the been dollars but health dollars priority, number call from have remind going? or enforcement how spend the it you, might over a course working of are on they policies. and mindset whether more they where are and people time, the their of on our perspective proactive the year. growth working mDAU onboarding

to guide changes But is make come better so better and sure any grow. world about grow to grow. to going DAU and on what the to when talked in that Jack job to people go our we not them to continue it's help and how for looking think mDAU the do cause are given continues to time, that they do DAU events Twitter at find to has the that We ought product going to we that to are they

Heath Terry

Great. Thank you.

Krista Bessinger

you. Thank Great.

please. question, Next

Operator

Mahaney from next Markets. Mark RBC Your from comes question Capital

is line Your open.

Mark Mahaney

be is here? on talk you do are And that you resources? just do human question three an has just Maybe consistent that with content, growth had expense profitability outlook, could AI just spend two this And just the have you point seems there rest that? data in the the One, a would able Thanks. about Is lot. pretty with do why of suggest the times Or growth how the any versus that questions. the a than. raw just Is of more to expense being greater to outlook use about that the reason is solution It expense Just terms resources, second Thanks the how It's vagaries then QX year? you recently. talk to that? is year. normal for of particular of enforcement the effective back are in the stronger growth expenses? outlook reported there QX able about

Jack Dorsey

Mark. Thanks

mix. a it's So

learning effective. lot intelligence to help internal getting a better at artificial to our applying more We machine tools agents our internal and are be

us earlier we changes can that product well that we move delivering lot better them. reports are to and the We queues of more so a so also much faster upon severity our prioritize that allow as act recognize can

only side not is on sure enable use our work tools more be but efficient, a our a of product agents that lot making lot a the the to more lot them So effective. that

appeal minimize to make might opportunities and trust we to in error also rigorous can that decision much understand process for there. looking rates more so make how appeals quickly people And any that a and

Ned Segal

and the expenses was ramp. Mark, question, about Your second

on end periods. the first they in happened just when happen might up with That any expenses can previous than you in quarter So more the given growing period. based in hiring

whole a number the for and base you and things that year top being add expense growth last of So end first the better into a increases a we of you with that higher basis. on accumulated XX%, percentage approximately bring But that potentially over up you the larger full-year. team expense that's course the quarter, and merit other on

Mark Mahaney

Okay. Thank you.

Krista Bessinger

Thank you.

Next question, please.

Operator

Your from comes question from Anthony Evercore. DiClemente next

open. line Your is

Anthony DiClemente

I think Ned, you. thank has CapEx. don't anyone and morning Good asked on

favor calls build your of outlook we And CapEx year? on this a to bit just drivers for which interview should was great. couple one the little interview, the At persuasive speed of Your a really you XXXX. for that Bill Jack, ago, of think argument Simmons listened a I text. then of infrastructure in weeks Maybe point or of in power interesting how about made and a text, in step-up

we look text that as could the are you your opposed I suggested and video. format. growing video fastest emotion with ad to even you thought But ad business, more think formats when the convey at

I your now. half advertising think of than more they are

in Thank on as of business mix confidence the to the you. video spot Twitter? talked Twitter and you if text really versus video, use sweet you shift think text and what about the conversations, the today, when gives for are case So side you for Ned

Ned Segal

will on Anthony, CapEx. take one, I first your

So just context, was CapEx XXXX. in XX% up for

in of all in talked payment terms. on about of that we for $XX QX paid that we XXXX year QX normal received have gear We million the

really our So to the On growth. the But to that make where sure to us it's up in it's important for careers. if like continuing that in the to data works out year, as invest XX% XX% do invest our to got was continuing in to continuing amount same and it to $XX similar feels reported the of CapEx of as year-over-year product offices XX%, team you to centers, a their place XX% guide most That they more growth. XX%. the is last work best the invest up million, you XX% normalize, teens mid to normalize XXXX, if an basis, it in

is a wherever to are This, Twitter investing no from we long-term a to CapEx for to we to world. they can deliver So great experience the changes perspective. in the the are sure us, an people make that priorities, indication that

Jack Dorsey

see And text video see at don't odds and we one and are I another. with that don't

that loop of conversation, think service. back In two. between it virtuous to is enriches the And more the there believe another or the a be the any points on text whether through video conversation. We video that fact, I medium,

platform So the a which parts really things and the two. out conversation, we more as we do see point think like the it live which generates see people allows there more And lot do clips is ingest instance, a relationship of a video healthy we or enriching on video between streams, more of video, of for do to conversation. even

service, So on we a conversation. of generate more want that to to all lot happening. that agnostic form That is tends it fuel media people a to any make of sure because what's are comes to show we the we use that

effects continued increased to network from. So able in we conversation and the because express usage lot within people a we service of increase that generates throughout in see video creates and all around being and to benefit engagement love the it it themselves the increase an

Anthony DiClemente

you. Thank

Krista Bessinger

Operator, think last you. one just Thank time please? have I for we question,

Operator

Then Eric Sheridan Okay. last from question will from come UBS.

open. line Your is

Eric Sheridan

about or sort number leverage out long-term. adjusted one. in items of we parsing you on of OpEx Maybe EBITDA XXXX, the any Number out areas just of talked modeled be look Maybe as line so Thanks purposes margins for questions. that XX% Ned. for mid-forties deleverage much that more getting for to thinking taking pronounced the the correctly? is there growth, two, all areas you or should That's specific P&L

you from almost for have that And to the way will there You GAAP be that Is objective? about think got achieving target translate Thanks volatile there EBIT years? a do long-term coming in how And standpoint? past the a so company you long-term this margin versus how linear much. think QX. profitability the

Ned Segal

Eric. Thanks Okay.

It's more question. the priorities for same same the Not share OpEx us. the more and Investing just to of there. First same on at the much relative prioritization.

won't drag again. it So through you I

margins. things couple of point EBITDA the to out. On A

XX% the for at the we first The for XX% is, and year. were quarter

achieve well. to that we those drive So public balance we have with to long-term demonstrate given evidence it the our the realize that EBITDA XXXX in to period to And We talked margins growth did over those QX ability that's and in ability our carefully any about. to our as purpose conversation. margins invest further have can we just long-term serve

over straight margins, teens translate GAAP in time, a somewhere years. operating from you to those EBITDA are you translation. in those try seasonal seen If of the terms we And get you into will they move other with as things that to in affect around a just along in mid advertising were have invest margins to the one going previous can to how business, to margins period another

Eric Sheridan

Thanks so much.

Ned Segal

Eric. Thanks

Jack Dorsey

you us. Okay. all Thank for joining

on additional head all our QX our you have for into your we call hold execution support before strategy XXXX, we and never progress we sharing felt our look and market to earnings and Twitter. on XX April updates when we As about Thank better on see the forward our we you quarter open. will next

Operator

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

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

Twitter (TWTR) 7 Feb 192018 Q4 Earnings call transcript