SAN FRANCISCO, April 30, 2020 /PRNewswire/ -- Twitter, Inc.
(NYSE: TWTR) today announced financial results for its first
quarter 2020.
"In this difficult time, Twitter's purpose is proving more vital
than ever. We are helping the world stay informed, and
providing a unique way for people to come together to help or
simply entertain and remind one another of our connections. We've
delivered our strongest ever year over year mDAU growth," said
Jack Dorsey, Twitter's CEO. "Public
conversation can help the world learn faster, solve common
problems, and realize we're all in this together. Our task now is
to make sure we retain that connection over the long term with the
many people new to Twitter."
"Revenue was $808 million in Q1,
up 3% year over year, reflecting a strong start to the quarter that
was impacted by widespread economic disruption related to COVID-19
in March," said Ned Segal, Twitter's
CFO. "We are shifting resources and priorities to increase focus on
our revenue products and reduce expense growth, ensuring our
resources are allocated against our most important work. Revenue
product has been elevated to our top company priority, as the
current environment validates and creates even more urgency around
delivering more direct response ad formats."
First Quarter 2020 Operational and Financial
Highlights
- Q1 revenue totaled $808(1) million, an increase of
3% year-over-year.
-
- Advertising revenue totaled $682
million, up approximately $3
million year-over-year.
-
- Total ad engagements increased 25% year-over-year.
- Cost per engagement (CPE) decreased 19% year-over-year.
- Data licensing and other revenue totaled $125 million, an increase of 17%
year-over-year.
- US revenue totaled $468 million,
an increase of 8% year-over-year.
- International revenue totaled $339
million, a decrease of 4% year-over-year.
- Q1 costs and expenses totaled $815
million, an increase of 18% year-over-year. This resulted in
an operating loss of $7 million and
-1% operating margin, compared to operating income of $94 million or 12% in the same period of the
previous year.
- Q1 net loss was $8 million,
representing a net margin of -1% and diluted EPS of ($0.01). This compares to net income of
$191 million, a net margin of 24% and
diluted EPS of $0.25 in the same
period of the previous year. Excluding a $124 million tax benefit related to the
establishment of a deferred tax asset from an intra-entity transfer
of an intangible asset, adjusted net income was $66(2) million, with adjusted net
margin of 8% and adjusted diluted EPS of $0.09 in the same period last year.
- Average monetizable daily active users (mDAU) were 166 million
for Q1, compared to 134(3) million in the same
period of the previous year and compared to 152 million in the
previous quarter.
-
- Average US mDAU were 33 million for Q1, compared to 28 million
in the same period of the previous year and compared to 31 million
in the previous quarter.
- Average international mDAU were 133 million for Q1, compared to
105 million in the same period of the previous year and compared to
121 million in the previous quarter.
_____________________________
|
(1) Please note that the sum of
advertising revenue and data licensing and other revenue does not
add up to total revenue in Q1'20 due to rounding. The sum of US
revenue and international revenue does not add up to total revenue
in Q1'20, also due to rounding.
|
(2) Please note that Q1'19 net income
less our Q1'19 tax benefit related to the establishment of a
deferred tax asset from an intra-entity transfer of an intangible
asset does not equal adjusted net income due to
rounding.
|
(3) Please note that the sum of US
mDAU and International mDAU does not add up to total mDAU in Q1'19
due to rounding.
|
Outlook
Given the unprecedented uncertainty and rapidly shifting market
conditions of the current business environment, we are not
providing quarterly revenue or operating income guidance for Q2.
Although we are also not updating our previously withdrawn
full-year outlook for expense and headcount growth, capital
expenditures, or stock-based compensation at this time, please note
the following:
- Capital expenditures: While we remain committed to
building out a new data center, recent developments may impact
capex spend in full-year 2020. Current IT supply chain constraints
are likely to affect timing of the buildout and elevated near-term
capacity needs are driving increased spend on our existing
infrastructure.
- SBC: Stock-based compensation expense is closely tied to
headcount, timing of grants, and vesting. We have diminished
visibility for full-year 2020 expenses with reductions in our
hiring ramp underway, but we do expect SBC to grow sequentially in
Q2 by 25% or more.
For more information regarding the non-GAAP financial measures
discussed in this press release, please see "Non-GAAP Financial
Measures" and "Reconciliation of GAAP to Non-GAAP Financial
Measures" below.
Appendix
First Quarter 2020 Webcast and Conference Call
Details
Twitter will host a conference call today,
Thursday, April 30, 2020, at
5am Pacific Time (8am Eastern Time) to discuss financial results
for the first quarter 2020. The company will be following the
conversation about the earnings announcement on Twitter. To have
your questions considered during the Q&A, Tweet your question
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, @nedsegal, @Twitter, and @TwitterIR as means of disclosing
material nonpublic information and for complying with its
disclosure obligations under Regulation FD.
Second Quarter Earnings Release Details
Twitter
expects to release financial results for the second quarter of 2020
on July 23, 2020, before the market
opens at approximately 4am Pacific
Time (7am Eastern Time). On
the same day, Twitter will host a conference call to discuss those
financial results at 5am Pacific Time
(8am Eastern Time).
About Twitter, Inc. (NYSE: TWTR)
Twitter is what's
happening in the world and what people are talking about right now.
From breaking news and entertainment to sports, politics, and
everyday interests, see every side of the story. Join the open
conversation. Watch live-streaming events. Available in more than
40 languages around the world, the service can be accessed via
twitter.com, an array of mobile devices, and SMS. For more
information, please visit about.twitter.com, follow @Twitter, and
download both the Twitter and Periscope apps at
twitter.com/download and periscope.tv.
A Note About Metrics
Twitter defines monetizable daily
active usage or users (mDAU) as people, organizations, or other
accounts who logged in or were otherwise authenticated and accessed
Twitter on any given day through twitter.com or Twitter
applications that are able to show ads. Average mDAU for a period
represents the number of mDAU on each day of such period divided by
the number of days for such period. Changes in mDAU are a measure
of changes in the size of our daily logged in or otherwise
authenticated active total accounts. To calculate the
year-over-year change in mDAU, we subtract the average mDAU for the
three months ended in the previous year from the average mDAU for
the same three months ended in the current year and divide the
result by the average mDAU for the three months ended in the
previous year. Additionally, our calculation of mDAU is not based
on any standardized industry methodology and is not necessarily
calculated in the same manner or comparable to similarly titled
measures presented by other companies. Similarly, our measures
of mDAU growth and engagement may differ from estimates published
by third parties or from similarly titled metrics of our
competitors due to differences in methodology.
The numbers of mDAU presented in our earnings materials are
based on internal company data. While these numbers are based on
what we believe to be reasonable estimates for the applicable
period of measurement, there are inherent challenges in measuring
usage and engagement across our large number of total accounts
around the world. Furthermore, our metrics may be impacted by our
information quality efforts, which are our overall efforts to
reduce malicious activity on the service, inclusive of spam,
malicious automation, and fake accounts. For example, there are a
number of false or spam accounts in existence on our platform. We
have performed an internal review of a sample of accounts and
estimate that the average of false or spam accounts during the
first quarter of 2020 represented fewer than 5% of our mDAU during
the quarter. The false or spam accounts for a period represents the
average of false or spam accounts in the samples during each
monthly analysis period during the quarter. In making this
determination, we applied significant judgment, so our estimation
of false or spam accounts may not accurately represent the actual
number of such accounts, and the actual number of false or spam
accounts could be higher than we have estimated. We are continually
seeking to improve our ability to estimate the total number of spam
accounts and eliminate them from the calculation of our mDAU, and
have made improvements in our spam detection capabilities that have
resulted in the suspension of a large number of spam, malicious
automation, and fake accounts. We intend to continue to make such
improvements. After we determine an account is spam, malicious
automation, or fake, we stop counting it in our mDAU, or other
related metrics. We also treat multiple accounts held by a single
person or organization as multiple mDAU because we permit people
and organizations to have more than one account. Additionally, some
accounts used by organizations are used by many people within the
organization. As such, the calculations of our mDAU may not
accurately reflect the actual number of people or organizations
using our platform.
In addition, geographic location data collected for purposes of
reporting the geographic location of our mDAU is based on the IP
address or phone number associated with the account when an account
is initially registered on Twitter. The IP address or phone number
may not always accurately reflect a person's actual location at the
time they engaged with our platform. For example, someone accessing
Twitter from the location of the proxy server that the person
connects to rather than from the person's actual location.
We regularly review and may adjust our processes for calculating
our internal metrics to improve their accuracy.
Forward-Looking Statements
This press 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 press release include, but are not limited
to, statements regarding Twitter's future financial and operating
performance, including its outlook, guidance and strategies to
improve financial and operating performance, and reduce expense
growth; the impact of the COVID-19 pandemic and related responses
of businesses and governments to the pandemic on Twitter's
operations and personnel, on commercial activity and advertiser
demand across Twitter's platform, and on Twitter's operating
results, as well as on worldwide and regional economies; Twitter's
anticipated strategies, and product and business plans and its
priorities, product initiatives, product development plans and
allocation of resources, and Twitter's expectations regarding
future capital expenditures and other expenses, including headcount
growth and its investments in a new data center, and the timing of
these expenditures. 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. These
risks include the possibility that: the COVID-19 pandemic and
related impacts will continue to adversely impact our business,
financial condition and operating results and the achievement of
our strategic objectives as well as the markets in which we operate
and worldwide and regional economies; Twitter's total accounts and
engagement do not grow or decline; Twitter's strategies,
priorities, or plans take longer to execute than anticipated;
Twitter's new products and product features do not meet
expectations and fail to drive mDAU growth; advertisers continue to
reduce or discontinue their spending on Twitter; data partners
reduce or discontinue their purchases of data licenses from
Twitter; and Twitter experiences expenses that exceed its
expectations. The forward-looking statements contained in this
press 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, 2019, 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 fiscal quarter ended
March 31, 2020. The forward-looking
statements in this press 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 of America, or
GAAP, Twitter considers certain financial measures that are not
prepared in accordance with GAAP, including revenues excluding
foreign exchange effect, which we refer to as on a constant
currency basis, non-GAAP income before income taxes, non-GAAP
provision (benefit) for income taxes, non-GAAP net income, non-GAAP
diluted net income per share, adjusted EBITDA, non-GAAP costs and
expenses, adjusted net income (loss), adjusted net margin, adjusted
diluted net income (loss) per share, and adjusted free cash flow.
In order to present revenues on a constant currency basis for the
fiscal quarter ended March 31, 2020,
Twitter translated the applicable measure using the prior year's
monthly exchange rates for its settlement currencies other than the
US dollar. Twitter defines non-GAAP income before income taxes as
income (loss) before income taxes 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, impairment (gain) on investments
in privately held companies, restructuring charges, and one-time
nonrecurring gain, if any; Twitter defines non-GAAP provision
(benefit) for income taxes as the current and deferred income tax
expense commensurate with the non-GAAP measure of profitability
using the estimated annual effective tax rate, which is dependent
on the jurisdictional mix of earnings; and Twitter defines non-GAAP
net income as net income (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, impairment (gain) on investments
in privately held companies, restructuring charges, and one-time
nonrecurring gain, if any, and adjustment to income tax expense
based on the non-GAAP measure of profitability using the estimated
annual effective tax rate, which is dependent on the jurisdictional
mix of earnings. Non-GAAP diluted net income per share is
calculated by dividing non-GAAP net income by non-GAAP diluted
share count. Non-GAAP diluted share count is GAAP basic share count
plus potential common stock instruments such as stock options,
RSUs, shares to be purchased under employee stock purchase plan,
unvested restricted stock, the conversion feature of convertible
senior notes, and warrants. Twitter defines adjusted EBITDA as net
income (loss) adjusted to exclude stock-based compensation expense,
depreciation and amortization expense, interest and other expense,
net, provision (benefit) for income taxes, restructuring charges,
and one-time nonrecurring gain, if any. Twitter defines non-GAAP
costs and expenses as total costs and expenses adjusted to exclude
stock-based compensation expense, amortization of acquired
intangible assets, non-cash expense related to acquisitions,
restructuring charges, and one-time nonrecurring gain, if any. We
have presented adjusted net income (loss) solely to exclude the
income tax benefit from the establishment of a deferred tax asset
related to an intra-entity transfer of an intangible asset in the
three months ended March 31, 2019,
and no other adjustments were made in the calculation of these
measures. Adjusted net margin is calculated by dividing adjusted
net income (loss) by GAAP revenue. Adjusted diluted net income
(loss) per share is calculated by dividing adjusted net income
(loss) by GAAP diluted share count. Adjusted free cash flow is GAAP
net cash provided by operating activities less capital expenditures
(i.e., purchases of property and equipment including equipment
purchases that were financed through finance leases, less proceeds
received from the disposition of property and equipment).
Twitter is presenting these non-GAAP financial measures to
assist investors in seeing Twitter's operating results through the
eyes of management, and because it believes that these measures
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.
Twitter believes that revenues on a constant currency basis,
non-GAAP income before income taxes, non-GAAP provision (benefit)
for income taxes, non-GAAP net income, non-GAAP diluted net income
per share, adjusted EBITDA, non-GAAP costs and expenses, adjusted
net income (loss), adjusted net margin, and adjusted dilutive net
income (loss) per share provide useful information about its
operating results, enhance the overall understanding of Twitter's
past performance and future prospects, and allow for greater
transparency with respect to key metrics used by Twitter's
management in its financial and operational decision-making.
Twitter uses these measures to establish budgets and operational
goals for managing its business and evaluating its performance.
Twitter believes that revenues on a constant currency basis is a
useful metric that facilitates comparison to its historical
performance. Twitter believes that non-GAAP net income, non-GAAP
diluted net income per share, adjusted EBITDA, non-GAAP costs and
expenses, adjusted net income (loss), adjusted net margin, and
adjusted diluted net income (loss) per share help identify
underlying trends in its business that could otherwise be masked by
expenses and one-time gains or charges that it excludes in non-GAAP
net income, non-GAAP diluted net income per share, adjusted EBITDA,
non-GAAP costs and expenses, adjusted net income (loss), adjusted
net margin, and adjusted diluted net income (loss) per share, or
the effect of the one-time income tax benefits related to the
establishment of a deferred tax asset described above, which are
non-operating benefits. In addition, Twitter believes that adjusted
free cash flow provides useful information to management and
investors about the amount of cash from operations and that it is
typically a more conservative measure of cash flows. However,
adjusted free cash flow does not necessarily represent funds
available for discretionary use and is not necessarily a measure of
its ability to fund its cash needs.
These non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. These non-GAAP financial measures
are not based on any standardized methodology prescribed by GAAP
and are not necessarily comparable to similarly titled measures
presented by other companies.
Contacts
Investors:
Cherryl
Valenzuela
ir@twitter.com
Press:
Giovanna
Falbo
press@twitter.com
TWITTER,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,463,349
|
|
|
$
|
1,799,082
|
|
Short-term
investments
|
|
4,207,315
|
|
|
4,839,970
|
|
Accounts receivable,
net
|
|
656,377
|
|
|
850,184
|
|
Prepaid expenses and
other current assets
|
|
140,538
|
|
|
130,839
|
|
Total current
assets
|
|
8,467,579
|
|
|
7,620,075
|
|
Property and
equipment, net
|
|
1,081,371
|
|
|
1,031,781
|
|
Operating lease
right-of-use assets
|
|
666,527
|
|
|
697,095
|
|
Intangible assets,
net
|
|
64,565
|
|
|
55,106
|
|
Goodwill
|
|
1,269,633
|
|
|
1,256,699
|
|
Deferred tax assets,
net
|
|
1,856,293
|
|
|
1,908,086
|
|
Other
assets
|
|
134,757
|
|
|
134,547
|
|
Total
assets
|
|
$
|
13,540,725
|
|
|
$
|
12,703,389
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
183,921
|
|
|
$
|
161,148
|
|
Accrued and other
current liabilities
|
|
370,256
|
|
|
500,893
|
|
Operating lease
liabilities, short-term
|
|
141,955
|
|
|
146,959
|
|
Finance lease
liabilities, short-term
|
|
13,888
|
|
|
23,476
|
|
Total current
liabilities
|
|
710,020
|
|
|
832,476
|
|
Convertible notes,
long-term
|
|
2,706,038
|
|
|
1,816,833
|
|
Senior notes,
long-term
|
|
692,240
|
|
|
691,967
|
|
Operating lease
liabilities, long-term
|
|
582,872
|
|
|
609,245
|
|
Deferred and other
long-term tax liabilities, net
|
|
25,366
|
|
|
24,170
|
|
Other long-term
liabilities
|
|
28,562
|
|
|
24,312
|
|
Total
liabilities
|
|
4,745,098
|
|
|
3,999,003
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
4
|
|
|
4
|
|
Additional paid-in
capital
|
|
8,952,059
|
|
|
8,763,330
|
|
Accumulated other
comprehensive loss
|
|
(157,997)
|
|
|
(70,534)
|
|
Retained
earnings
|
|
1,561
|
|
|
11,586
|
|
Total stockholders'
equity
|
|
8,795,627
|
|
|
8,704,386
|
|
Total liabilities and
stockholders' equity
|
|
$
|
13,540,725
|
|
|
$
|
12,703,389
|
|
|
|
|
|
|
|
|
|
|
|
TWITTER,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2020
|
|
2019
|
Revenue
|
|
$
|
807,637
|
|
|
$
|
786,890
|
|
Costs and
expenses
|
|
|
|
|
Cost of
revenue
|
|
284,037
|
|
|
264,011
|
|
Research and
development
|
|
200,388
|
|
|
146,246
|
|
Sales and
marketing
|
|
221,287
|
|
|
205,799
|
|
General and
administrative
|
|
109,368
|
|
|
77,176
|
|
Total costs and
expenses
|
|
815,080
|
|
|
693,232
|
|
Income (loss) from
operations
|
|
(7,443)
|
|
|
93,658
|
|
Interest
expense
|
|
(33,270)
|
|
|
(37,260)
|
|
Interest
income
|
|
32,897
|
|
|
40,541
|
|
Other expense,
net
|
|
(7,719)
|
|
|
(436)
|
|
Income (loss) before
income taxes
|
|
(15,535)
|
|
|
96,503
|
|
Benefit from income
taxes
|
|
(7,139)
|
|
|
(94,301)
|
|
Net income
(loss)
|
|
$
|
(8,396)
|
|
|
$
|
190,804
|
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
0.25
|
|
Diluted
|
|
$
|
(0.01)
|
|
|
$
|
0.25
|
|
Weighted-average
shares used to compute net income (loss) per share:
|
|
|
|
|
Basic
|
|
780,688
|
|
|
764,550
|
|
Diluted
|
|
780,688
|
|
|
777,689
|
|
TWITTER,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
(8,396)
|
|
|
$
|
190,804
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
120,649
|
|
|
113,474
|
|
Stock-based
compensation expense
|
|
97,903
|
|
|
83,491
|
|
Amortization of
discount on convertible notes
|
|
21,504
|
|
|
30,877
|
|
Bad debt
expense
|
|
14,067
|
|
|
627
|
|
Deferred income
taxes
|
|
(7,024)
|
|
|
14,364
|
|
Deferred tax assets
establishment related to intra-entity transfers of intangible
assets
|
|
—
|
|
|
(124,420)
|
|
Impairment of
investments in privately-held companies
|
|
8,003
|
|
|
—
|
|
Other
adjustments
|
|
(8,425)
|
|
|
3,446
|
|
Changes in assets and
liabilities, net of assets acquired and liabilities assumed from
acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
168,932
|
|
|
103,633
|
|
Prepaid expenses and
other assets
|
|
(6,252)
|
|
|
(9,284)
|
|
Operating lease
right-of-use assets
|
|
38,749
|
|
|
35,433
|
|
Accounts
payable
|
|
(14,480)
|
|
|
(12,879)
|
|
Accrued and other
liabilities
|
|
(139,168)
|
|
|
(47,997)
|
|
Operating lease
liabilities
|
|
(39,295)
|
|
|
(29,876)
|
|
Net cash provided by
operating activities
|
|
246,767
|
|
|
351,693
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchases of property
and equipment
|
|
(122,667)
|
|
|
(83,026)
|
|
Proceeds from sales of
property and equipment
|
|
1,623
|
|
|
1,956
|
|
Purchases of
marketable securities
|
|
(1,233,530)
|
|
|
(1,635,142)
|
|
Proceeds from
maturities of marketable securities
|
|
1,125,634
|
|
|
1,711,300
|
|
Proceeds from sales of
marketable securities
|
|
722,253
|
|
|
34,358
|
|
Business combinations,
net of cash acquired
|
|
(14,780)
|
|
|
—
|
|
Other investing
activities
|
|
(12,389)
|
|
|
—
|
|
Net cash provided by
investing activities
|
|
466,144
|
|
|
29,446
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from issuance
of convertible notes
|
|
1,000,000
|
|
|
—
|
|
Debt issuance
costs
|
|
(14,662)
|
|
|
—
|
|
Taxes paid related to
net share settlement of equity awards
|
|
(11,693)
|
|
|
(9,477)
|
|
Payments of finance
lease obligations
|
|
(9,966)
|
|
|
(19,719)
|
|
Proceeds from exercise
of stock options
|
|
305
|
|
|
95
|
|
Net cash provided by
(used in) financing activities
|
|
963,984
|
|
|
(29,101)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
1,676,895
|
|
|
352,038
|
|
Foreign exchange
effect on cash, cash equivalents and restricted cash
|
|
(11,948)
|
|
|
(146)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
1,827,666
|
|
|
1,921,875
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
3,492,613
|
|
|
$
|
2,273,767
|
|
Supplemental
disclosures of non-cash investing and financing
activities
|
|
|
|
|
Common stock issued in
connection with acquisitions
|
|
$
|
1,312
|
|
|
$
|
—
|
|
Changes in accrued
property and equipment purchases
|
|
$
|
38,512
|
|
|
$
|
43,720
|
|
Reconciliation of
cash, cash equivalents and restricted cash as shown in the
consolidated statements of cash flows
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,463,349
|
|
|
$
|
2,247,661
|
|
Restricted cash
included in prepaid expenses and other current assets
|
|
1,846
|
|
|
1,222
|
|
Restricted cash
included in other assets
|
|
27,418
|
|
|
24,884
|
|
Total cash, cash
equivalents and restricted cash
|
|
$
|
3,492,613
|
|
|
$
|
2,273,767
|
|
TWITTER,
INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2020
|
|
2019
|
Non-GAAP net
income and net income per share:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(8,396)
|
|
|
$
|
190,804
|
|
Exclude: Benefit from
income taxes
|
|
(7,139)
|
|
|
(94,301)
|
|
Income (loss) before
income taxes
|
|
(15,535)
|
|
|
96,503
|
|
Stock-based
compensation expense
|
|
97,903
|
|
|
83,491
|
|
Amortization of
acquired intangible assets
|
|
5,041
|
|
|
4,785
|
|
Non-cash interest
expense related to convertible notes
|
|
21,504
|
|
|
30,877
|
|
Impairment on
investments in privately-held companies
|
|
8,003
|
|
|
—
|
|
Non-GAAP income before
income taxes
|
|
116,916
|
|
|
215,656
|
|
Non-GAAP provision
(benefit) for income taxes (1)
|
|
29,508
|
|
|
(72,829)
|
|
Non-GAAP net
income
|
|
$
|
87,408
|
|
|
$
|
288,485
|
|
GAAP basic
shares
|
|
780,688
|
|
|
764,550
|
|
Dilutive equity awards
(2)
|
|
9,987
|
|
|
13,139
|
|
Non-GAAP diluted
shares (3)
|
|
790,675
|
|
|
777,689
|
|
Non-GAAP diluted net
income per share
|
|
$
|
0.11
|
|
|
$
|
0.37
|
|
Adjusted
EBITDA:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(8,396)
|
|
|
$
|
190,804
|
|
Stock-based
compensation expense
|
|
97,903
|
|
|
83,491
|
|
Depreciation and
amortization expense
|
|
120,649
|
|
|
113,474
|
|
Interest and other
expense (income), net
|
|
8,092
|
|
|
(2,845)
|
|
Benefit from income
taxes
|
|
(7,139)
|
|
|
(94,301)
|
|
Adjusted
EBITDA
|
|
$
|
211,109
|
|
|
$
|
290,623
|
|
Stock-based
compensation expense by function:
|
|
|
|
|
Cost of
revenue
|
|
$
|
5,756
|
|
|
$
|
5,048
|
|
Research and
development
|
|
60,587
|
|
|
46,261
|
|
Sales and
marketing
|
|
18,839
|
|
|
18,065
|
|
General and
administrative
|
|
12,721
|
|
|
14,117
|
|
Total stock-based
compensation expense
|
|
$
|
97,903
|
|
|
$
|
83,491
|
|
Amortization of
acquired intangible assets by function:
|
|
|
|
|
Cost of
revenue
|
|
$
|
5,041
|
|
|
$
|
4,320
|
|
Sales and
marketing
|
|
—
|
|
|
465
|
|
Total amortization of
acquired intangible assets
|
|
$
|
5,041
|
|
|
$
|
4,785
|
|
Non-GAAP costs and
expenses:
|
|
|
|
|
Total costs and
expenses
|
|
$
|
815,080
|
|
|
$
|
693,232
|
|
Less: stock-based
compensation expense
|
|
(97,903)
|
|
|
(83,491)
|
|
Less: amortization of
acquired intangible assets
|
|
(5,041)
|
|
|
(4,785)
|
|
Total non-GAAP costs
and expenses
|
|
$
|
712,136
|
|
|
$
|
604,956
|
|
Adjusted free cash
flow:
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
246,767
|
|
|
$
|
351,693
|
|
Less: purchases of
property and equipment
|
|
(122,667)
|
|
|
(83,026)
|
|
Plus: proceeds from
sales of property and equipment
|
|
1,623
|
|
|
1,956
|
|
Adjusted free cash
flow
|
|
$
|
125,723
|
|
|
$
|
270,623
|
|
Adjusted net
income (loss) and adjusted diluted net income (loss) per
share:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(8,396)
|
|
|
$
|
190,804
|
|
Exclude: benefit from
deferred tax asset (4)
|
|
—
|
|
|
(124,420)
|
|
Adjusted net income
(loss)
|
|
$
|
(8,396)
|
|
|
$
|
66,384
|
|
GAAP diluted
shares
|
|
780,688
|
|
|
777,689
|
|
Adjusted diluted net
income (loss) per share
|
|
$
|
(0.01)
|
|
|
$
|
0.09
|
|
|
|
|
|
|
(1) The
non-GAAP benefit from income taxes for the three months ended March
31, 2019 includes a benefit of $124.4 million from the
establishment of a deferred tax asset from an intra-entity transfer
of an intangible asset.
|
(2) Gives
effect to potential common stock instruments such as stock options,
RSUs, shares to be issued under ESPP, unvested restricted stocks
and warrants. There is no dilutive effect of the notes or the
related hedge and warrant transactions.
|
(3) GAAP dilutive shares are the same
as non-GAAP dilutive shares for the three months ended March 31,
2019.
|
(4) The benefit from deferred tax
asset in the three months ended March 31, 2019 is related to the
establishment of a deferred tax asset from an intra-entity transfer
of an intangible asset.
|
TWITTER,
INC.
|
RECONCILIATION OF
GAAP REVENUE TO NON-GAAP CONSTANT CURRENCY REVENUE
|
(In
millions)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2020
|
|
2019
|
Revenue,
advertising revenue, data licensing and other revenue,
international revenue and international advertising revenue
excluding foreign exchange effect:
|
|
|
|
|
Revenue(1)
|
|
$
|
808
|
|
|
$
|
787
|
|
Foreign exchange
effect on 2020 revenue using 2019 rates
|
|
1
|
|
|
|
Revenue excluding
foreign exchange effect
|
|
$
|
809
|
|
|
|
Revenue
year-over-year change percent
|
|
3
|
%
|
|
|
Revenue excluding
foreign exchange effect year-over-year change percent
|
|
3
|
%
|
|
|
|
|
|
|
|
Advertising
revenue
|
|
$
|
682
|
|
|
$
|
679
|
|
Foreign exchange
effect on 2020 advertising revenue using 2019 rates
|
|
1
|
|
|
|
Advertising revenue
excluding foreign exchange effect
|
|
$
|
683
|
|
|
|
Advertising revenue
year-over-year change percent
|
|
—
|
%
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year change
percent
|
|
1
|
%
|
|
|
|
|
|
|
|
Data licensing and
other revenue
|
|
$
|
125
|
|
|
$
|
107
|
|
Foreign exchange
effect on 2020 data licensing and other revenue using 2019
rates
|
|
—
|
|
|
|
Data licensing and
other revenue excluding foreign exchange effect
|
|
$
|
125
|
|
|
|
Data licensing and
other revenue year-over-year change percent
|
|
17
|
%
|
|
|
Data licensing and
other revenue excluding foreign exchange effect year-over-year
change percent
|
|
17
|
%
|
|
|
|
|
|
|
|
International
revenue
|
|
$
|
339
|
|
|
$
|
355
|
|
Foreign exchange
effect on 2020 international revenue using 2019 rates
|
|
1
|
|
|
|
International revenue
excluding foreign exchange effect
|
|
$
|
340
|
|
|
|
International revenue
year-over-year change percent
|
|
(4)
|
%
|
|
|
International revenue
excluding foreign exchange effect year-over-year change
percent
|
|
(4)
|
%
|
|
|
|
|
|
|
|
International
advertising revenue
|
|
$
|
301
|
|
|
$
|
317
|
|
Foreign exchange
effect on 2020 international advertising revenue using 2019
rates
|
|
1
|
|
|
|
International
advertising revenue excluding foreign exchange effect
|
|
$
|
302
|
|
|
|
International
advertising revenue year-over-year change percent
|
|
(5)
|
%
|
|
|
International
advertising revenue excluding foreign exchange effect
year-over-year change percent
|
|
(5)
|
%
|
|
|
|
|
|
|
|
(1) Note the sum of advertising
revenue and data licensing and other revenue does not add up to
total revenue in the three months ended March 31, 2020 and 2019
above due to rounding.
|
View original
content:http://www.prnewswire.com/news-releases/twitter-announces-first-quarter-2020-results-301050109.html
SOURCE Twitter, Inc.