SAN FRANCISCO, July 26, 2016 /PRNewswire/ -- Twitter, Inc.
(NYSE: TWTR) today announced financial results for its fiscal 2016
second quarter ended June 30, 2016.
The company posted quarterly revenue of $602
million, up 20% year-over-year. Quarterly GAAP net loss was
$107 million, or ($0.15) per diluted share with quarterly non-GAAP
net income of $93 million, or
$0.13 per diluted share. Average
monthly active users (MAUs) were 313 million for the quarter, up 3%
year-over-year and compared to 310 million in the previous quarter.
Mobile MAUs represented approximately 82% of total MAUs.
Advertising revenue totaled $535
million, an increase of 18% year-over-year. Mobile
advertising revenue was 89% of total advertising revenue. Data
licensing and other revenue totaled $67
million, an increase of 35% year-over-year. U.S. revenue
totaled $361 million, an increase of
12% year-over-year. International revenue totaled $241 million, an increase of 33% percent
year-over-year.
"We've made a lot of progress on our priorities this quarter,"
said Jack Dorsey, Twitter's CEO. "We
are confident in our product roadmap, and we are seeing the direct
benefit of our recent product changes in increased engagement and
usage. We remain focused on improving our service to make it fast,
simple and easy to use, like the ability to watch live-streaming
video events unfold and the commentary around them."
"This quarter we saw year-over-year and sequential growth in
both monthly active and daily active usage," said Anthony Noto, Twitter's CFO. "We continue to
believe that, with disciplined execution against our priorities, we
can drive sustained engagement and audience growth over time. We
also have exciting momentum with live-streaming video initiatives
underway. We're partnering with the providers of the world's most
popular live content to bring more and more of those events onto
Twitter to provide a unique and compelling consumer
experience."
Link to Shareholder Letter:
https://investor.twitterinc.com/releases.cfm
Webcast and Conference Call Details
Twitter will host a conference call today, Tuesday, July 26, 2016, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss financial
results. The company will be following the conversation about the
earnings announcement on Twitter. To have your questions considered
during the Q&A, Tweet your questions to @TwitterIR using #TWTR.
To listen to a live audio webcast, please visit the company's
Investor Relations page at investor.twitterinc.com. Twitter has
used, and intends to continue to use, its Investor Relations
website and the Twitter accounts of @jack, @twitter and @TwitterIR
as means of disclosing material non-public information and for
complying with its disclosure obligations under Regulation FD.
About Twitter, Inc.
Twitter, Inc. (NYSE: TWTR) is what's happening in the world right
now. From breaking news and entertainment to sports and politics,
from big events to everyday interests. If it's happening anywhere,
it's happening first on Twitter. Twitter is where the full story
unfolds with all the live commentary and where live events come to
life unlike anywhere else. Twitter is available in more than 40
languages around the world. The service can be accessed at
Twitter.com, on a variety of mobile devices and via SMS. For more
information, visit about.twitter.com or follow @twitter.
Forward Looking Statements
This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements
generally relate to future events or Twitter's future financial or
operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
"may," "will," "should," "expects," "plans," "anticipates," "going
to," "could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential" or "continue" or
the negative of these words or other similar terms or expressions
that concern Twitter's expectations, strategy, priorities, plans or
intentions. Forward-looking statements in this release include, but
are not limited to, Twitter's strategies, the development of,
investment in and demand for its products, product features and
services, including video, product and business plans, including
Twitter's product roadmap, audience growth and engagement and
product changes. Twitter's expectations and beliefs regarding these
matters may not materialize, and actual results in future periods
are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. The
forward-looking statements contained in this release are also
subject to other risks and uncertainties, including those more
fully described in Twitter's Annual Report on Form 10-K for the
fiscal year ended December 31, 2015
and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2016 filed with the
Securities and Exchange Commission. Additional information will
also be set forth in Twitter's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2016. The
forward-looking statements in this release are based on information
available to Twitter as of the date hereof, and Twitter disclaims
any obligation to update any forward-looking statements, except as
required by law.
Non-GAAP Financial Measures
To supplement Twitter's financial information presented in
accordance with generally accepted accounting principles in
the United States, or GAAP,
Twitter considers certain financial measures that are not prepared
in accordance with GAAP, including non-GAAP net income. Twitter
defines non-GAAP net income as net loss adjusted to exclude
stock-based compensation expense, amortization of acquired
intangible assets, non-cash interest expense related to convertible
notes, non-cash expense related to acquisitions, the income tax
effects related to acquisitions, and restructuring charges.
Twitter uses the non-GAAP financial measure of non-GAAP net
income in evaluating its operating results and for financial and
operational decision-making purposes. Twitter believes that
non-GAAP net income, among others, helps identify underlying trends
in its business that could otherwise be masked by the effect of the
expenses that we exclude in non-GAAP net income. Twitter also
believes that non-GAAP net income provides useful information about
its operating results, enhances the overall understanding of
Twitter's past performance and future prospects and allows for
greater transparency with respect to a key metric used by Twitter's
management in its financial and operational decision-making.
Twitter uses this measure to establish budgets and operational
goals for managing its business and evaluating its performance.
Twitter is presenting this non-GAAP financial measure to assist
investors in seeing Twitter's operating results through the eyes of
management, and because it believes that this measure provide an
additional tool for investors to use in comparing Twitter's core
business operating results over multiple periods with other
companies in its industry.
This non-GAAP financial measure should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. This non-GAAP financial measure
is not based on any standardized methodology prescribed by GAAP and
is not necessarily comparable to similarly-titled measures
presented by other companies.
TWITTER,
INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
(In thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Net loss and net
loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(107,217)
|
|
|
$
|
(136,663)
|
|
|
$
|
(186,948)
|
|
|
$
|
(299,105)
|
|
Weighted-average
shares used to compute net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
698,326
|
|
|
|
655,721
|
|
|
|
694,959
|
|
|
|
648,143
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.15)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.46)
|
|
Non-GAAP net
income and net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(107,217)
|
|
|
$
|
(136,663)
|
|
|
$
|
(186,948)
|
|
|
$
|
(299,105)
|
|
Stock-based
compensation expense
|
|
167,695
|
|
|
|
175,143
|
|
|
|
318,611
|
|
|
|
357,948
|
|
Amortization of
acquired intangible assets
|
|
12,816
|
|
|
|
13,965
|
|
|
|
25,546
|
|
|
|
24,760
|
|
Non-cash interest
expense related to convertible notes
|
|
18,570
|
|
|
|
17,006
|
|
|
|
36,940
|
|
|
|
33,644
|
|
Non-cash expense
related to acquisitions
|
|
—
|
|
|
|
926
|
|
|
|
-
|
|
|
|
926
|
|
Income tax effects
related to acquisitions
|
|
1,064
|
|
|
|
(21,859)
|
|
|
|
1,455
|
|
|
|
(23,147)
|
|
Restructuring
charges
|
|
—
|
|
|
|
—
|
|
|
|
47
|
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
92,928
|
|
|
$
|
48,518
|
|
|
$
|
195,651
|
|
|
$
|
95,026
|
|
GAAP diluted
shares
|
|
698,326
|
|
|
|
655,721
|
|
|
|
694,959
|
|
|
|
648,143
|
|
Dilutive equity awards
(1)
|
|
10,753
|
|
|
|
40,147
|
|
|
|
10,593
|
|
|
|
43,636
|
|
Non-GAAP diluted
shares
|
|
709,079
|
|
|
|
695,868
|
|
|
|
705,552
|
|
|
|
691,779
|
|
Non-GAAP diluted net
income per share
|
$
|
0.13
|
|
|
$
|
0.07
|
|
|
$
|
0.28
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Gives
effect to potential common stock instruments such as stock options,
RSUs, shares to be issued under ESPP, unvested restricted stock and
warrant. There is no dilutive effect of the notes nor the related
hedge and warrant transactions.
|
|
Logo -
http://photos.prnewswire.com/prnh/20160510/366147LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/twitter-posts-second-quarter-results-of-602-million-in-revenue-300304375.html
SOURCE Twitter, Inc.