SAN FRANCISCO, July 27, 2017 /PRNewswire/ -- Twitter, Inc.
(NYSE: TWTR) today announced financial results for its second
quarter 2017.
"We're proud that the product improvements we're making continue
to increase their overall contribution to Twitter's growth. Monthly
active usage (MAU) increased 5% year-over-year and daily active
usage (DAU) increased 12% year-over-year, marking the third
consecutive quarter of double-digit growth," said Jack Dorsey, Twitter's CEO. "We're strengthening
our execution, which gives us confidence that our product
improvements will continue to contribute to meaningful increases in
daily active usage. We're also encouraged by the progress we're
making executing against our top revenue generating priorities as
we focus on making Twitter the best place to see and share what's
happening, where you can see every side and perspective."
"We continue to invest in revenue products and services that
leverage Twitter's unique value proposition and are delivering more
value to advertisers than ever, with double-digit growth in daily
active usage, improvements in ad relevance and better pricing,"
said Anthony Noto, Twitter's COO.
"We're proud of our strong growth in video, which remained our
largest and fastest growing ad format, and we received a positive
response from advertisers around the live premium video content
debuted at Twitter's Digital Content NewFronts. We remain focused
on growing revenue by improving the performance and measurement of
our revenue products, tapping into new channels of demand and
continuing to grow our data licensing revenue."
Second Quarter 2017 Operational and Financial
Highlights
The company posted second quarter revenue of $574 million, a decrease of 5% year-over-year.
Quarterly GAAP net loss was $116
million, representing a GAAP net margin of (20%) and GAAP
diluted EPS of ($0.16). This compares
with a quarterly GAAP net loss of $107
million, representing a GAAP net margin of (18%) and GAAP
diluted EPS of ($0.15) in the same
period last year.
Quarterly non-GAAP net income was $56
million, or $0.08 per diluted
share.
Beginning this quarter, Twitter is changing how it calculates
its non-GAAP provision for income taxes in accordance with the SEC
guidance on non-GAAP financial measures. In order to assist
investors to better understand the change, the company is providing
the calculations under its prior method and the new method later in
this press release under non-GAAP financial measures. The "New
Method" consists of current and deferred income tax expense
commensurate with the non-GAAP measure of profitability using its
blended U.S. statutory tax rate (which was 37%). The "Prior Method"
consists of current and deferred income tax expense on a GAAP basis
excluding the income tax effects related to acquisitions. This
change will not affect the company's non-GAAP income before income
taxes, actual cash tax payments, or cash flows, but will result in
significantly higher non-GAAP provision for income taxes. Twitter,
however, does not expect to pay substantial taxes on a GAAP basis
in the U.S. and certain other foreign jurisdictions for the
foreseeable future due to its net operating loss carryforward
balances. As of December 31, 2016,
the company had U.S. federal net operating loss carryforwards of
approximately $3.5 billion and state
net operating loss carryforwards of approximately $1.4 billion. Over the near term, most of its
cash taxes will continue to be mainly driven by the tax expense of
its foreign subsidiaries, which amounts have not historically been
significant. Twitter also believes that its long-term effective
GAAP tax rate will be lower than the U.S. statutory tax rate based
upon its established tax structure.
Under the prior method, non-GAAP net income for the
quarter would have been $87
million and non-GAAP diluted EPS would have been
$0.12.
Adjusted EBITDA was $178 million
or 31% of total revenue, compared to $175
million or 29% of total revenue in the second quarter of
2016.
Average MAU was 328 million for the quarter, up 5%
year-over-year and compared to 328 million in the previous quarter.
Average DAU grew 12% year-over-year, marking the third
consecutive quarter of double-digit growth.
Outlook
Twitter today provided guidance for the third quarter and full
year 2017.
Similar to the last three quarters, the company is providing
adjusted EBITDA, adjusted EBITDA margin, and stock-based
compensation expense guidance.
For the third quarter, Twitter expects:
- Adjusted EBITDA to be between $130
million and $150 million;
- Adjusted EBITDA margin to be between 25% and 26%; and
- Stock-based compensation to be between $100 million and $110 million.
Additionally, for the full year 2017, Twitter
expects:
- Total non-GAAP expenses to be down 3% to down 6%, compared to
full year 2016;
- Stock-based compensation to be down 25% to down 30%, compared
to full year 2016; and
- Capital expenditures to be between $300
million and $400 million.
Note that the company's outlook for the third quarter and the
full year 2017 reflects foreign exchange rates as of July 14, 2017.
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. Guidance for Adjusted EBITDA and Adjusted
EBITDA margin excludes 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. The company has not reconciled
Adjusted EBITDA guidance to GAAP net loss because it does not
provide guidance on GAAP net loss or the reconciling items between
Adjusted EBITDA and GAAP net loss, other than stock-based
compensation expense, as a result of the uncertainty regarding, and
the potential variability of, these items. The actual amount of net
loss and such reconciling items will have a significant impact on
its Adjusted EBITDA and Adjusted EBITDA margin. Accordingly, a
reconciliation of the non-GAAP financial measure guidance to the
corresponding GAAP measure is not available without unreasonable
effort.
Twitter's complete second quarter 2017 financial results can
be found by accessing the company's Shareholder Letter at:
https://investor.twitterinc.com/releases.cfm
Webcast and Conference Call Details
Twitter will host
a conference call today, Thursday, July 27,
2017, at 5:00 a.m. Pacific
Time (8:00 a.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 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, @Twitter, and @TwitterIR as means of disclosing material
nonpublic information and for complying with its disclosure
obligations under Regulation FD.
About Twitter
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.
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, statements regarding Twitter's trends in engagement and
audience growth, future financial and operating performance,
including its outlook and guidance, Twitter's expectations
regarding its tax expense and cash taxes, Twitter's strategies,
product and business plans, including strategies for improving the
performance and measurement of its revenue products, tapping into
new channels of demand, growing its data licensing revenue and the
impact thereof on its business and operating results, the
development of, investment in and demand for content, its products,
product features and services, including video (including Live
video), Twitter's beliefs regarding its execution, ad relevance and
pricing, the behavior of Twitter's users and advertisers, Twitter's
expectations regarding the growth of its revenue, product cadence,
impact of product improvements on growth and DAU, profitability,
audience, engagement and monetization, advertiser base and
spending, allocation of resources, and ad engagements. 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: Twitter's user base 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; advertisers 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 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, 2016
and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2017, each 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, 2017. 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.
A Note About Metrics
Twitter defines monthly active
users (MAUs) as Twitter users who logged in or were otherwise
authenticated and accessed Twitter through its website, mobile
website, desktop or mobile applications, SMS or registered
third-party applications or websites in the 30-day period ending on
the date of measurement. Average MAUs for a period represent the
average of the MAUs at the end of each month during the period.
Twitter defines daily active users or daily active usage (DAU) as
Twitter users who logged in or were otherwise authenticated and
accessed Twitter through our website, mobile website or mobile
applications on any given day. Average DAU for a period represents
the number of DAUs on each day of such period divided by the number
of days for such period. To calculate the year-over-year change in
DAUs, the average DAU for the three months ended in the previous
year is subtracted from the average DAU for the same three months
ended in the current year and the result is divided by the average
DAU in the previous year. Prior to Q3 2016, Twitter has discussed
DAUs and the ratio of MAUs to DAUs. In those instances, for
comparability and consistency with MAUs, DAUs also included users
who accessed Twitter through its desktop applications and
third-party properties.
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 Adjusted EBITDA, non-GAAP net income, non-GAAP expenses,
non-GAAP income before income taxes, non-GAAP provision for income
taxes, Adjusted EBITDA margin, and non-GAAP diluted EPS. Twitter
defines Adjusted EBITDA as net loss adjusted to exclude stock-based
compensation expense, depreciation and amortization expense,
interest and other expenses, net, provision (benefit) for income
taxes, restructuring charges and one-time nonrecurring gain;
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, cost-method
investment impairment charges, restructuring charges and one-time
nonrecurring gain; and adjustment to income tax expense based on
the non-GAAP measure of profitability using Twitter's blended U.S.
statutory tax rate (which was 37%). Twitter defines non-GAAP
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; Twitter
defines non-GAAP income before income taxes as 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, cost-method investment impairment charges,
restructuring charges and one-time nonrecurring gain; and Twitter
defines non-GAAP provision for income taxes as the current and
deferred income tax expense commensurate with the non-GAAP measure
of profitability using Twitter's blended U.S. statutory tax rate.
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by
revenue. Non-GAAP diluted EPS is calculated by dividing non-GAAP
net income by non-GAAP share count. Non-GAAP share count is GAAP
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 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 uses the non-GAAP financial measures of Adjusted EBITDA,
non-GAAP net income, non-GAAP income before income taxes, non-GAAP
provision for income taxes, non-GAAP expenses, Adjusted EBITDA
margin and non-GAAP diluted EPS in evaluating its operating results
and for financial and operational decision-making purposes. Twitter
believes that Adjusted EBITDA, non-GAAP net income, non-GAAP
expenses, Adjusted EBITDA margin and non-GAAP diluted EPS help
identify underlying trends in its business that could otherwise be
masked by the effect of the expenses and one-time gains or charges
that it excludes in Adjusted EBITDA, non-GAAP net income, non-GAAP
expenses, Adjusted EBITDA margin, and non-GAAP diluted EPS. Twitter
also believes that Adjusted EBITDA, non-GAAP net income, non-GAAP
expenses, Adjusted EBITDA margin, and non-GAAP diluted EPS 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.
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:
|
Press:
|
Cherryl
Valenzuela
|
Kristin
Binns
|
ir@twitter.com
|
press@twitter.com
|
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,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(116,488)
|
|
|
$
|
(107,217)
|
|
|
$
|
(178,047)
|
|
|
$
|
(186,948)
|
|
Stock-based
compensation expense
|
|
113,396
|
|
|
|
167,695
|
|
|
|
230,393
|
|
|
|
318,611
|
|
Depreciation and
amortization expense
|
|
103,063
|
|
|
|
93,283
|
|
|
|
205,855
|
|
|
|
181,904
|
|
Interest and other
expense, net
|
|
74,716
|
|
|
|
18,200
|
|
|
|
92,803
|
|
|
|
36,787
|
|
Provision for income
taxes
|
|
3,413
|
|
|
|
2,641
|
|
|
|
6,607
|
|
|
|
4,669
|
|
Restructuring charges
and one-time nonrecurring gain
|
|
(226)
|
|
|
|
—
|
|
|
|
(9,798)
|
|
|
|
47
|
|
Adjusted
EBITDA
|
$
|
177,874
|
|
|
$
|
174,602
|
|
|
$
|
347,813
|
|
|
$
|
355,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(NEW
METHOD)
|
|
|
(PRIOR
METHOD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Non-GAAP net
income and net
income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(116,488)
|
|
|
$
|
(107,217)
|
|
|
$
|
(178,047)
|
|
|
$
|
(186,948)
|
|
|
$
|
(116,488)
|
|
|
$
|
(107,217)
|
|
|
$
|
(178,047)
|
|
|
$
|
(186,948)
|
|
|
Exclude: Provision
for income taxes
|
|
3,413
|
|
|
|
2,641
|
|
|
|
6,607
|
|
|
|
4,669
|
|
|
|
3,413
|
|
|
|
2,641
|
|
|
|
6,607
|
|
|
|
4,669
|
|
|
Loss before income
taxes
|
|
(113,075)
|
|
|
|
(104,576)
|
|
|
|
(171,440)
|
|
|
|
(182,279)
|
|
|
|
(113,075)
|
|
|
|
(104,576)
|
|
|
|
(171,440)
|
|
|
|
(182,279)
|
|
|
Stock-based
compensation expense
|
|
113,396
|
|
|
|
167,695
|
|
|
|
230,393
|
|
|
|
318,611
|
|
|
|
113,396
|
|
|
|
167,695
|
|
|
|
230,393
|
|
|
|
318,611
|
|
|
Amortization of
acquired intangible
assets
|
|
14,340
|
|
|
|
12,816
|
|
|
|
30,531
|
|
|
|
25,546
|
|
|
|
14,340
|
|
|
|
12,816
|
|
|
|
30,531
|
|
|
|
25,546
|
|
|
Non-cash interest
expense related
to convertible notes
|
|
20,041
|
|
|
|
18,570
|
|
|
|
39,289
|
|
|
|
36,940
|
|
|
|
20,041
|
|
|
|
18,570
|
|
|
|
39,289
|
|
|
|
36,940
|
|
|
Impairment of
investments in privately-held companies
|
|
55,000
|
|
|
|
—
|
|
|
|
55,000
|
|
|
|
—
|
|
|
|
55,000
|
|
|
|
—
|
|
|
|
55,000
|
|
|
|
—
|
|
|
Restructuring charges
and one-time nonrecurring gain
|
|
(226)
|
|
|
|
—
|
|
|
|
(9,798)
|
|
|
|
47
|
|
|
|
(226)
|
|
|
|
—
|
|
|
|
(9,798)
|
|
|
|
47
|
|
|
Non-GAAP income before
income taxes
|
|
89,476
|
|
|
|
94,505
|
|
|
|
173,975
|
|
|
|
198,865
|
|
|
|
89,476
|
|
|
|
94,505
|
|
|
|
173,975
|
|
|
|
198,865
|
|
|
Non-GAAP provision for
income taxes (1)
|
|
33,106
|
|
|
|
34,967
|
|
|
|
64,371
|
|
|
|
73,580
|
|
|
|
2,723
|
|
|
|
1,577
|
|
|
|
4,818
|
|
|
|
3,214
|
|
|
Non-GAAP net
income
|
$
|
56,370
|
|
|
$
|
59,538
|
|
|
$
|
109,604
|
|
|
$
|
125,285
|
|
|
$
|
86,753
|
|
|
$
|
92,928
|
|
|
$
|
169,157
|
|
|
$
|
195,651
|
|
|
GAAP diluted
shares
|
|
730,069
|
|
|
|
698,326
|
|
|
|
726,083
|
|
|
|
694,959
|
|
|
|
730,069
|
|
|
|
698,326
|
|
|
|
726,083
|
|
|
|
694,959
|
|
|
Dilutive equity awards
(2)
|
|
8,214
|
|
|
|
10,753
|
|
|
|
8,444
|
|
|
|
10,593
|
|
|
|
8,214
|
|
|
|
10,753
|
|
|
|
8,444
|
|
|
|
10,593
|
|
|
Non-GAAP diluted
shares
|
|
738,283
|
|
|
|
709,079
|
|
|
|
734,527
|
|
|
|
705,552
|
|
|
|
738,283
|
|
|
|
709,079
|
|
|
|
734,527
|
|
|
|
705,552
|
|
|
Non-GAAP diluted net
income per share
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
$
|
0.15
|
|
|
$
|
0.18
|
|
|
$
|
0.12
|
|
|
$
|
0.13
|
|
|
$
|
0.23
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Beginning Q2 2017, the Company is changing its method of
calculating its non-GAAP provision for income taxes in accordance
with the SEC's Non-GAAP Financial Measures Compliance and
Disclosure Interpretation. In order to assist investors to better
understand the change, the Company is providing the calculations
under its prior method and the new method. The "New Method"
consists of current and deferred income tax expense commensurate
with the non-GAAP measure of profitability using its blended U.S.
statutory tax rate of 37%. The "Prior Method" consists of
current and deferred income tax expense on a GAAP basis excluding
the income tax effects related to acquisitions. The Company
does not, however, expect to pay significant GAAP taxes for the
foreseeable future in the U.S. and certain other foreign
jurisdictions and believes its long-term effective GAAP tax rate
will be lower than the U.S. statutory tax rate based upon the
established tax structure.
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(2) 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.
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TWITTER,
INC.
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RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
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(In thousands,
except per share data)
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(Unaudited)
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The impact of the
change described in (1) above on prior periods with
respect to non-GAAP net income and non-GAAP diluted net income per
share is as follows:
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(PRIOR
METHOD)
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Three Months
Ended
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June
30,
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March
31,
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December
31,
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September
30,
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June
30,
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March
31,
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2017
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2017
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2016
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2016
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2016
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2016
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Non-GAAP net
income and net income per
share:
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Net loss
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$
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(116,488)
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$
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(61,559)
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$
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(167,054)
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$
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(102,871)
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$
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(107,217)
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$
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(79,731)
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Exclude: Provision
for income taxes
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3,413
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3,194
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4,808
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6,562
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2,641
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2,028
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Loss before income
taxes
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(113,075)
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(58,365)
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(162,246)
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(96,309)
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(104,576)
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(77,703)
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Stock-based
compensation expense
|
|
113,396
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|
|
|
116,997
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|
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|
138,095
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|
158,527
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|
167,695
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|
150,916
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Amortization of
acquired intangible assets
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14,340
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|
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|
16,191
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27,220
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16,572
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12,816
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12,730
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Non-cash interest
expense related to convertible notes
|
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20,041
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|
19,248
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19,070
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18,650
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18,570
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18,370
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Impairment of
investments in privately-held
companies
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|
55,000
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—
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—
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—
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—
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—
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Restructuring charges
and one-time
nonrecurring gain
|
|
(226)
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|
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|
(9,572)
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101,249
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—
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—
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47
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Non-GAAP income before
income taxes
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89,476
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84,499
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123,388
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97,440
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94,505
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|
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|
104,360
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Non-GAAP provision for
income taxes
|
|
2,723
|
|
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|
2,095
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4,784
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|
5,699
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|
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|
1,577
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|
|
|
1,637
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Non-GAAP net
income
|
$
|
86,753
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|
$
|
82,404
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|
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$
|
118,604
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|
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$
|
91,741
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|
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$
|
92,928
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|
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$
|
102,723
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GAAP diluted
shares
|
|
730,069
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722,048
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713,618
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704,359
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698,326
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691,564
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Dilutive equity
awards
|
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8,214
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8,675
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14,357
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16,492
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|
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10,753
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10,433
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|
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|
Non-GAAP diluted
shares
|
|
738,283
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|
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|
730,723
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|
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727,975
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720,851
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709,079
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|
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701,997
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Non-GAAP diluted net
income per share
|
$
|
0.12
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$
|
0.11
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$
|
0.16
|
|
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$
|
0.13
|
|
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$
|
0.13
|
|
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$
|
0.15
|
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|
|
|
|
|
|
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(NEW
METHOD)
|
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|
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|
|
|
|
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|
|
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|
Three Months
Ended
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
|
Non-GAAP net
income and net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss
|
$
|
(116,488)
|
|
|
$
|
(61,559)
|
|
|
$
|
(167,054)
|
|
|
$
|
(102,871)
|
|
|
$
|
(107,217)
|
|
|
$
|
(79,731)
|
|
|
|
Exclude: Provision
for income taxes
|
|
3,413
|
|
|
|
3,194
|
|
|
|
4,808
|
|
|
|
6,562
|
|
|
|
2,641
|
|
|
|
2,028
|
|
|
|
Loss before income
taxes
|
|
(113,075)
|
|
|
|
(58,365)
|
|
|
|
(162,246)
|
|
|
|
(96,309)
|
|
|
|
(104,576)
|
|
|
|
(77,703)
|
|
|
|
Stock-based
compensation expense
|
|
113,396
|
|
|
|
116,997
|
|
|
|
138,095
|
|
|
|
158,527
|
|
|
|
167,695
|
|
|
|
150,916
|
|
|
|
Amortization of
acquired intangible assets
|
|
14,340
|
|
|
|
16,191
|
|
|
|
27,220
|
|
|
|
16,572
|
|
|
|
12,816
|
|
|
|
12,730
|
|
|
|
Non-cash interest
expense related to convertible notes
|
|
20,041
|
|
|
|
19,248
|
|
|
|
19,070
|
|
|
|
18,650
|
|
|
|
18,570
|
|
|
|
18,370
|
|
|
|
Impairment of
investments in privately-held companies
|
|
55,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Restructuring charges
and one-time nonrecurring gain
|
|
(226)
|
|
|
|
(9,572)
|
|
|
|
101,249
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47
|
|
|
|
Non-GAAP income before
income taxes
|
|
89,476
|
|
|
|
84,499
|
|
|
|
123,388
|
|
|
|
97,440
|
|
|
|
94,505
|
|
|
|
104,360
|
|
|
|
Non-GAAP provision for
income taxes
|
|
33,106
|
|
|
|
31,265
|
|
|
|
45,654
|
|
|
|
36,053
|
|
|
|
34,967
|
|
|
|
38,613
|
|
|
|
Non-GAAP net
income
|
$
|
56,370
|
|
|
$
|
53,234
|
|
|
$
|
77,734
|
|
|
$
|
61,387
|
|
|
$
|
59,538
|
|
|
$
|
65,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted
shares
|
|
730,069
|
|
|
|
722,048
|
|
|
|
713,618
|
|
|
|
704,359
|
|
|
|
698,326
|
|
|
|
691,564
|
|
|
|
Dilutive equity
awards
|
|
8,214
|
|
|
|
8,675
|
|
|
|
14,357
|
|
|
|
16,492
|
|
|
|
10,753
|
|
|
|
10,433
|
|
|
|
Non-GAAP diluted
shares
|
|
738,283
|
|
|
|
730,723
|
|
|
|
727,975
|
|
|
|
720,851
|
|
|
|
709,079
|
|
|
|
701,997
|
|
|
|
Non-GAAP diluted net
income per share
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
$
|
0.11
|
|
|
$
|
0.09
|
|
|
$
|
0.08
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
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|
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|
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View original
content:http://www.prnewswire.com/news-releases/twitter-announces-second-quarter-2017-results-300495203.html
SOURCE Twitter, Inc.