SAN
FRANCISCO, April 28, 2022 /PRNewswire/ -- Twitter,
Inc. (NYSE: TWTR) today announced financial results for its first
quarter 2022.
First Quarter 2022 Operational and
Financial Highlights
Except as otherwise stated, all financial results discussed
below are presented in accordance with generally accepted
accounting principles in the United
States of America, or GAAP. As supplemental information, we
have provided certain non-GAAP financial measures in this press
release's supplemental tables, and such supplemental tables include
a reconciliation of these non-GAAP measures to our GAAP results.
The sum of individual metrics may not always equal total amounts
indicated due to rounding.
- Q1 revenue totaled $1.20 billion,
an increase of 16% year-over-year, or 19% on a constant currency
basis, reflecting headwinds associated with the war in Ukraine. When excluding MoPub and MoPub
Acquire, year-over-year growth was 22%.1
-
- Advertising revenue totaled $1.11
billion, an increase of 23%, or 26% on a constant currency
basis.
- Subscription and other revenue totaled $94 million, a decrease of 31% year-over-year, or
a decrease of 5% year-over-year when excluding MoPub from the year
ago period.1
- Costs and expenses totaled $1.33
billion, an increase of 35% year-over-year. This resulted in
an operating loss of $128 million and
-11% operating margin, compared to an operating income of
$52 million or 5% operating margin in
the same period of the previous year.
- Stock-based compensation (SBC) expense grew 60% year-over-year
to $177 million and was approximately
15% of total revenue.
- Net income was $513 million,
representing a net margin of 43% and diluted EPS of $0.61.
-
- Net income of $513 million
includes a pre-tax gain of $970
million from the sale of MoPub for $1.05 billion and income taxes related to the
gain of $331 million. This compares
to net income of $68 million, a net
margin of 7% and diluted EPS of $0.08
in the same period of the previous year.
- Net cash provided by operating activities in the quarter was
$126 million, compared to
$390 million in the same period last
year. Capital expenditures totaled $161
million, compared to $179
million in the same period last year.
- Average monetizable daily active usage (mDAU)[2] was 229.0
million for Q1, up 15.9% compared to Q1 of the prior
year.
-
- Average US mDAU was 39.6 million for Q1, up 6.4% compared to Q1
of the prior year.
- Average international mDAU was 189.4 million for Q1, up 18.1%
compared to Q1 of the prior year.
1 In December 2021,
we completed the wind down of MoPub Acquire and on January 1, 2022, we closed the sale of MoPub to
AppLovin. As a reminder, MoPub revenue was previously
reported in Subscription and Other Revenue, and MoPub Acquire
revenue was previously reported in Advertising
Revenue.
2 An error introduced in March of
2019 resulted in an overstatement of mDAU from Q1'19 through Q4'21.
See the section in this document titled "mDAU recast" for the full
description.
In February 2022, we announced
that our board of directors authorized a share repurchase of up to
$4.0 billion of our common stock,
replacing our previously authorized $2.0
billion share repurchase program from 2020. As part of the
new program, we entered into a $2.0
billion accelerated share repurchase in February 2022.
Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward
looking guidance, and are withdrawing all previously provided goals
and outlook.
mDAU Recast
In March of 2019, we launched a feature that allowed people to
link multiple separate accounts together in order to conveniently
switch between accounts. An error was made at that time, such that
actions taken via the primary account resulted in all linked
accounts being counted as mDAU. This resulted in an overstatement
of mDAU from Q1'19 through Q4'21. The table below provides updated
values for mDAU from Q4'20 to Q4'21 alongside historical reported
values for those same time periods. We are including one decimal
place for both the absolute values and growth rates to give more
detail around the magnitude of the changes. Note that recast data
is not available prior to Q4'20 due to data retention policies, but
our estimates suggest the prior period adjustments are not likely
to be greater than those in Q4'20.
Recast
mDAU
(in
Millions)
|
|
|
|
|
|
|
Q4'20
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
US
|
36.9
|
37.2
|
36.2
|
36.9
|
37.5
|
International
|
154.0
|
160.4
|
167.8
|
172.4
|
177.3
|
Global
|
190.9
|
197.6
|
204.0
|
209.3
|
214.7
|
|
|
|
|
|
|
Previously
reported mDAU
(in
Millions)
|
|
|
|
|
|
|
Q4'20
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
US
|
37.2
|
37.6
|
36.5
|
37.2
|
37.8
|
International
|
155.2
|
161.7
|
169.2
|
173.8
|
178.8
|
Global
|
192.3
|
199.3
|
205.7
|
211.0
|
216.6
|
|
|
|
|
|
|
Difference
(in
Millions)
|
|
|
|
|
|
|
Q4'20
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
US
|
-0.3
|
-0.3
|
-0.3
|
-0.3
|
-0.3
|
International
|
-1.1
|
-1.3
|
-1.4
|
-1.4
|
-1.5
|
Global
|
-1.4
|
-1.6
|
-1.7
|
-1.7
|
-1.9
|
The sum of
individual metrics may not always equal total amounts indicated due
to rounding.
|
|
|
|
|
|
|
|
|
|
|
For more information regarding the non-GAAP financial measures
discussed in this press release, please see "Non-GAAP Financial
Measures" and the reconciliations of these non-GAAP financial
measures to the most directly comparable financial measures
calculated in accordance with GAAP below.
Elon Musk Transaction
As announced on April 25, 2022, we
entered into a definitive agreement to be acquired by an entity
wholly owned by Elon Musk, for $54.20 per share in
cash. Upon completion of the transaction, Twitter will become a
privately held company. The transaction is subject to customary
closing conditions and completion of regulatory review and
Twitter's stockholder approval. The transaction, which is expected
to close in 2022, has been approved by the board of directors of
Twitter.
First Quarter 2022 Webcast and
Conference Call Details
In light of the proposed transaction with Mr. Musk, as is
customary during the pendency of an acquisition, Twitter will
not be hosting a conference call, issuing a shareholder letter, or
providing financial guidance in conjunction with its first quarter
2022 earnings release. For further detail and discussion of
our financial performance please refer to our upcoming quarterly
report on Form 10-Q for the quarter ended March 31, 2022.
About Twitter, Inc. (NYSE:
TWTR)
Twitter is what's happening and what people are talking about
right now. To learn more, visit about.twitter.com and follow
@Twitter. Let's talk.
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, Twitter applications that are able to show
ads, or paid Twitter products, including subscriptions. 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 2022 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.
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 for (benefit from) income taxes, non-GAAP net income
(loss), non-GAAP diluted net income (loss) per share, adjusted
EBITDA, non-GAAP costs and expenses, and adjusted free cash flow,
as well as other measures such as measures excluding MoPub Acquire
(formerly known as CrossInstall), which we wound down in
December 2021, and MoPub, which we
sold to AppLovin on January 1,
2022.
In order to present revenues on a constant currency basis for
the fiscal quarter ended March 31,
2022, 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 non-recurring gain, if any; Twitter defines non-GAAP
provision for (benefit from) 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 (loss) 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 non-recurring 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 (loss) per share is calculated by dividing
non-GAAP net income (loss) 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 for (benefit from) income taxes, restructuring
charges, and one-time non-recurring 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 non-recurring gain, if any.
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 for
(benefit from) income taxes, non-GAAP net income (loss), non-GAAP
diluted net income (loss) per share, adjusted EBITDA, and non-GAAP
costs and expenses 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 (loss),
non-GAAP diluted net income (loss) per share, adjusted EBITDA, and
non-GAAP costs and expenses help identify underlying trends in its
business that could otherwise be masked by expenses and one-time
gains or charges, or the effects of the income tax benefits related
to the establishment of deferred tax assets and the tax provisions
from the establishment of a valuation allowance against deferred
tax assets described above, which are non-operating benefits and
expenses.
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.
We have included measures excluding MoPub and MoPub Acquire
because we believe these measures are useful in understanding the
ongoing results of our operations.
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.
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 the
Transaction, including the expected timing of the closing of the
Transaction; and expectations for Twitter following the closing of
the Transaction. If any of these risks or uncertainties
materialize, or if any of Twitter's assumptions prove incorrect,
Twitter's actual results could differ materially from the results
expressed or implied by these forward-looking statements.
Additional risks and uncertainties include those associated with:
the possibility that the conditions to the closing of the
Transaction are not satisfied, including the risk that required
approvals from Twitter's stockholders for the Transaction or
required regulatory approvals to consummate the Transaction are not
obtained; potential litigation relating to the Transaction;
uncertainties as to the timing of the consummation of the
Transaction; the ability of each party to consummate the
Transaction; possible disruption related to the Transaction to
Twitter's current plans and operations, including through the loss
of customers and employees; and other risks and uncertainties
detailed in the periodic reports that Twitter files with the SEC,
including Twitter's Annual Report on Form 10-K filed with the SEC
on February 16, 2022, which may be
obtained on the investor relations section of Twitter's website
(https://investor.twitterinc.com). All forward-looking statements
in this communication are based on information available to Twitter
as of the date of this communication, and Twitter does not assume
any obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made, except as required by law.
Additional Information and Where
to Find It
Twitter, its directors and certain executive officers are
participants in the solicitation of proxies from stockholders in
connection with the pending Transaction. Twitter plans to file a
proxy statement (the "Transaction Proxy Statement") with the SEC in
connection with the solicitation of proxies to approve the
Transaction. Additional information regarding such participants,
including their direct or indirect interests, by security holdings
or otherwise, will be included in the Transaction Proxy Statement
and other relevant documents to be filed with the SEC in connection
with the Transaction. Information relating to the foregoing can
also be found in Twitter's definitive proxy statement for its 2022
Annual Meeting of Stockholders (the "2022 Proxy Statement"), which
was filed with the SEC on April 12,
2022. To the extent that holdings of Twitter's securities
have changed since the amounts printed in the 2022 Proxy Statement,
such changes have been or will be reflected on Statements of Change
in Ownership on Form 4 filed with the SEC.
Promptly after filing the definitive Transaction Proxy Statement
with the SEC, Twitter will mail the definitive Transaction Proxy
Statement and a WHITE proxy card to each stockholder entitled to
vote at the special meeting to consider the Transaction.
STOCKHOLDERS ARE URGED TO READ THE TRANSACTION PROXY STATEMENT
(INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER
RELEVANT DOCUMENTS THAT TWITTER WILL FILE WITH THE SEC WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Stockholders may obtain, free of charge, the preliminary and
definitive versions of the Transaction Proxy Statement, any
amendments or supplements thereto, and any other relevant documents
filed by Twitter with the SEC in connection with the Transaction at
the SEC's website (http://www.sec.gov). Copies of Twitter's
definitive Transaction Proxy Statement, any amendments or
supplements thereto, and any other relevant documents filed by
Twitter with the SEC in connection with the Transaction will also
be available, free of charge, at Twitter's investor relations
website (https://investor.twitterinc.com) or by writing to Twitter,
Inc., Attention: Investor Relations, 1355 Market Street, Suite 900,
San Francisco, California
94103.
Contacts
Investors:
ir@twitter.com
Press:
press@twitter.com
TWITTER,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
2,283,308
|
|
$
2,186,549
|
Short-term investments
|
|
3,978,645
|
|
4,207,133
|
Accounts receivable, net
|
|
948,142
|
|
1,217,404
|
Prepaid expenses and other current assets
|
|
265,973
|
|
266,484
|
Assets held for sale
|
|
—
|
|
40,800
|
Total current assets
|
|
7,476,068
|
|
7,918,370
|
Property and equipment,
net
|
|
2,150,581
|
|
2,082,160
|
Operating lease
right-of-use assets
|
|
1,272,435
|
|
1,195,124
|
Intangible assets,
net
|
|
59,725
|
|
69,324
|
Goodwill
|
|
1,298,462
|
|
1,301,520
|
Deferred tax assets,
net
|
|
941,883
|
|
1,148,573
|
Other assets
|
|
351,803
|
|
344,445
|
Total assets
|
|
$
13,550,957
|
|
$
14,059,516
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
|
$
189,524
|
|
$
203,171
|
Accrued and other current liabilities
|
|
738,778
|
|
918,350
|
Operating lease liabilities, short-term
|
|
208,405
|
|
222,346
|
Total current
liabilities
|
|
1,136,707
|
|
1,343,867
|
Convertible notes,
long-term
|
|
3,561,067
|
|
3,559,023
|
Senior notes,
long-term
|
|
1,683,114
|
|
693,996
|
Operating lease
liabilities, long-term
|
|
1,173,879
|
|
1,071,209
|
Deferred and other
long-term tax liabilities, net
|
|
41,227
|
|
40,691
|
Other long-term
liabilities
|
|
50,047
|
|
43,531
|
Total liabilities
|
|
7,646,041
|
|
6,752,317
|
Stockholders'
equity:
|
|
|
|
|
Common stock
|
|
4
|
|
4
|
Additional paid-in capital
|
|
6,677,294
|
|
8,432,112
|
Treasury stock
|
|
—
|
|
(5,295)
|
Accumulated other comprehensive loss
|
|
(155,522)
|
|
(117,320)
|
Accumulated deficit
|
|
(616,860)
|
|
(1,002,302)
|
Total stockholders' equity
|
|
5,904,916
|
|
7,307,199
|
Total liabilities and
stockholders' equity
|
|
$
13,550,957
|
|
$
14,059,516
|
|
|
|
|
|
TWITTER,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(In thousands,
except per share data)
(Unaudited)
|
|
|
Three Months
Ended
March
31,
|
|
|
2022
|
|
2021
|
Revenue
|
|
$
1,200,984
|
|
$
1,036,018
|
Costs and
expenses
|
|
|
|
|
Cost of revenue
|
|
507,450
|
|
381,008
|
Research and development
|
|
371,695
|
|
250,709
|
Sales and marketing
|
|
299,809
|
|
234,592
|
General and administrative
|
|
149,863
|
|
117,527
|
Total costs and
expenses
|
|
1,328,817
|
|
983,836
|
Income (loss) from
operations
|
|
(127,833)
|
|
52,182
|
Interest
expense
|
|
(15,444)
|
|
(13,185)
|
Interest
income
|
|
7,962
|
|
11,001
|
Other income (expense),
net
|
|
(6,506)
|
|
6
|
Gain on sale of asset
group
|
|
970,474
|
|
—
|
Income before income
taxes
|
|
828,653
|
|
50,004
|
Provision (benefit) for
income taxes
|
|
315,367
|
|
(18,001)
|
Net income
|
|
$
513,286
|
|
$
68,005
|
Net income per
share:
|
|
|
|
|
Basic
|
|
$
0.66
|
|
$
0.09
|
Diluted
|
|
$
0.61
|
|
$
0.08
|
Numerator used to
compute net income per share:
|
|
|
|
|
Basic
|
|
$
513,286
|
|
$
68,005
|
Diluted
|
|
$
515,313
|
|
$
68,005
|
Weighted-average shares
used to compute net income per share:
|
|
|
|
|
Basic
|
|
778,937
|
|
795,633
|
Diluted
|
|
838,590
|
|
872,187
|
TWITTER,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
|
Net
income
|
|
$
513,286
|
|
$
68,005
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
expense
|
|
160,283
|
|
131,052
|
Stock-based compensation
expense
|
|
177,263
|
|
110,873
|
Bad debt expense
|
|
(709)
|
|
(1,405)
|
Deferred income
taxes
|
|
190,707
|
|
(23,873)
|
Gain on sale of asset
group
|
|
(970,474)
|
|
—
|
Other adjustments
|
|
5,992
|
|
4,739
|
Changes in assets and
liabilities, net of assets acquired and liabilities assumed from
acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
190,737
|
|
189,297
|
Prepaid expenses and
other assets
|
|
(48,836)
|
|
(80,989)
|
Operating lease
right-of-use assets
|
|
66,054
|
|
49,246
|
Accounts
payable
|
|
(35,610)
|
|
(24,808)
|
Accrued and other
liabilities
|
|
(67,953)
|
|
6,382
|
Operating lease
liabilities
|
|
(54,649)
|
|
(38,335)
|
Net
cash provided by operating activities
|
|
126,091
|
|
390,184
|
Cash flows from
investing activities
|
|
|
|
|
Purchases of property and equipment
|
|
(163,174)
|
|
(181,181)
|
Proceeds from sales of property and equipment
|
|
2,482
|
|
1,835
|
Purchases of marketable securities
|
|
(1,100,837)
|
|
(1,370,830)
|
Proceeds from maturities of marketable securities
|
|
697,351
|
|
1,221,461
|
Proceeds from sales of marketable securities
|
|
590,593
|
|
1,067,603
|
Purchases of investments in privately-held
companies
|
|
(5,014)
|
|
(30,867)
|
Proceeds from sale of asset group
|
|
1,050,000
|
|
—
|
Investments in Finance Justice Fund
|
|
(6,500)
|
|
(10,200)
|
Business combinations, net of cash acquired
|
|
—
|
|
(8,378)
|
Other investing activities
|
|
—
|
|
(9,085)
|
Net
cash provided by investing activities
|
|
1,064,901
|
|
680,358
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from issuance of convertible notes
|
|
—
|
|
1,437,500
|
Proceeds from issuance of senior notes
|
|
1,000,000
|
|
—
|
Purchases of convertible note hedges
|
|
—
|
|
(213,469)
|
Proceeds from issuance of warrants concurrent with note
hedges
|
|
—
|
|
161,144
|
Debt issuance costs
|
|
(11,270)
|
|
(16,769)
|
Repurchases of common stock
|
|
(2,077,759)
|
|
(161,552)
|
Taxes paid related to net share settlement of equity
awards
|
|
(4,190)
|
|
(10,569)
|
Payments of finance lease obligations
|
|
—
|
|
(565)
|
Proceeds from exercise of stock options
|
|
66
|
|
1,958
|
Net
cash provided by (used in) financing activities
|
|
(1,093,153)
|
|
1,197,678
|
Net increase in cash,
cash equivalents and restricted cash
|
|
97,839
|
|
2,268,220
|
Foreign exchange effect
on cash, cash equivalents and restricted cash
|
|
(814)
|
|
(8,018)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
2,210,685
|
|
2,011,276
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
2,307,710
|
|
$
4,271,478
|
Supplemental
disclosures of non-cash investing and financing
activities
|
|
|
|
|
Changes in accrued property and equipment
purchases
|
|
$
36,166
|
|
$
57,030
|
Reconciliation of
cash, cash equivalents and restricted cash as shown in the
consolidated statements of cash flows
|
|
|
|
|
Cash and cash equivalents
|
|
$
2,283,308
|
|
$
4,248,702
|
Restricted cash included in prepaid expenses and other
current assets
|
|
8,139
|
|
3,516
|
Restricted cash included in other assets
|
|
16,263
|
|
19,260
|
Total cash, cash equivalents and restricted cash
|
|
$
2,307,710
|
|
$
4,271,478
|
TWITTER,
INC.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands,
except per share data)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Non-GAAP net
income:
|
|
|
|
|
Net income
(1)
|
|
$
513,286
|
|
$
68,005
|
Exclude: Provision
(benefit) for income taxes
|
|
315,367
|
|
(18,001)
|
Income before income taxes
|
|
828,653
|
|
50,004
|
Exclude:
|
|
|
|
|
Stock-based compensation
expense
|
|
177,263
|
|
110,873
|
Amortization of acquired
intangible assets
|
|
9,586
|
|
8,107
|
Non-GAAP income before income taxes
|
|
1,015,502
|
|
168,984
|
Non-GAAP provision for income taxes
|
|
259,931
|
|
27,773
|
Non-GAAP net
income
|
|
$
755,571
|
|
$
141,211
|
Non-GAAP diluted net
income per share:
|
|
|
|
|
Non-GAAP net
income
|
|
$
755,571
|
|
$
141,211
|
Plus: interest expense on
convertible notes, net of tax
|
|
2,027
|
|
—
|
Numerator used to
compute non-GAAP diluted net income per share
|
|
$
757,598
|
|
$
141,211
|
GAAP basic
shares
|
|
778,937
|
|
795,633
|
Dilutive securities
(2)
|
|
59,653
|
|
76,554
|
Non-GAAP diluted shares
(3)
|
|
838,590
|
|
872,187
|
Non-GAAP diluted net
income per share
|
|
$
0.90
|
|
$
0.16
|
Adjusted
EBITDA:
|
|
|
|
|
Net income
(1)
|
|
$
513,286
|
|
$
68,005
|
Exclude:
|
|
|
|
|
Stock-based compensation
expense
|
|
177,263
|
|
110,873
|
Depreciation and amortization
expense
|
|
160,283
|
|
131,052
|
Interest and other expense
(income), net
|
|
13,988
|
|
2,178
|
Provision (benefit) for income
taxes
|
|
315,367
|
|
(18,001)
|
Adjusted
EBITDA
|
|
$
1,180,187
|
|
$
294,107
|
Stock-based
compensation expense by function:
|
|
|
|
|
Cost of revenue
|
|
$
12,880
|
|
$
8,732
|
Research and
development
|
|
106,604
|
|
65,156
|
Sales and marketing
|
|
29,164
|
|
21,171
|
General and
administrative
|
|
28,615
|
|
15,814
|
Total stock-based
compensation expense
|
|
$
177,263
|
|
$
110,873
|
Amortization of
acquired intangible assets by function:
|
|
|
|
|
Cost of revenue
|
|
$
6,124
|
|
$
6,499
|
Research and
development
|
|
3,462
|
|
1,508
|
Sales and marketing
|
|
—
|
|
100
|
Total amortization of
acquired intangible assets
|
|
$
9,586
|
|
$
8,107
|
Non-GAAP costs and
expenses:
|
|
|
|
|
Total costs and
expenses
|
|
$
1,328,817
|
|
$
983,836
|
Exclude:
|
|
|
|
|
Stock-based compensation expense
|
|
(177,263)
|
|
(110,873)
|
Amortization of acquired intangible assets
|
|
(9,586)
|
|
(8,107)
|
Total non-GAAP costs
and expenses
|
|
$
1,141,968
|
|
$
864,856
|
Adjusted free cash
flow:
|
|
|
|
|
Net cash provided by
operating activities (4)
|
|
$
126,091
|
|
$
390,184
|
Less: purchases of property and
equipment
|
|
(163,174)
|
|
(181,181)
|
Plus: proceeds from sales of
property and equipment
|
|
2,482
|
|
1,835
|
Adjusted free cash
flow
|
|
$
(34,601)
|
|
$
210,838
|
|
|
|
|
|
TWITTER,
INC.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands,
except per share data)
(Unaudited)
(Continued)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Revenue, advertising
revenue, and subscription and other revenue excluding MoPub and
MoPub Acquire:
|
|
|
|
|
Revenue
|
|
$ 1,200,984
|
|
$
1,036,018
|
Exclude: MoPub and MoPub Acquire revenue
|
|
—
|
|
(51,210)
|
Total revenue excluding
MoPub and MoPub Acquire revenue
|
|
$ 1,200,984
|
|
$ 984,808
|
|
|
|
|
|
Advertising
revenue
|
|
$ 1,106,578
|
|
$ 898,840
|
Exclude: MoPub Acquire revenue
|
|
—
|
|
(13,407)
|
Advertising revenue
excluding MoPub Acquire revenue
|
|
$ 1,106,578
|
|
$ 885,433
|
|
|
|
|
|
Subscription and other
revenue
|
|
$
94,406
|
|
$ 137,178
|
Exclude: MoPub revenue
|
|
—
|
|
(37,803)
|
Subscription and other
revenue excluding MoPub revenue
|
|
$
94,406
|
|
$
99,375
|
|
|
|
|
|
(1) In the
first quarter of 2022, we recorded a $970 million pre-tax gain on
the sale of our MoPub asset group and related income tax expense of
$331 million.
|
(2) Gives
effect to potential common stock instruments such as stock options,
RSUs, shares to be issued under ESPP, unvested restricted stocks,
the convertible notes, and warrants.
|
(3) GAAP
diluted shares are the same as non-GAAP diluted shares for all
periods presented.
|
(4) Net cash
provided by operating activities in the three months ended March
31, 2022 reflects a $150 million payment we made to the Federal
Trade Commission related to a draft complaint we received in
2020.
|
TWITTER,
INC.
RECONCILIATION OF
GAAP REVENUE TO NON-GAAP CONSTANT CURRENCY REVENUE
(In
millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Revenue, advertising
revenue, subscription and other(1) revenue,
international revenue and international advertising revenue
excluding foreign exchange effect:
|
|
|
|
|
Revenue
|
|
$
1,201
|
|
$ 1,036
|
Foreign exchange effect
on 2022 revenue using 2021 rates
|
|
27
|
|
|
Revenue excluding
foreign exchange effect
|
|
$
1,228
|
|
|
Revenue year-over-year
change percent
|
|
16 %
|
|
|
Revenue excluding
foreign exchange effect year-over-year change percent
|
|
19 %
|
|
|
|
|
|
|
|
Advertising
revenue
|
|
$
1,107
|
|
$
899
|
Foreign exchange effect
on 2022 advertising revenue using 2021 rates
|
|
27
|
|
|
Advertising revenue
excluding foreign exchange effect
|
|
$
1,134
|
|
|
Advertising revenue
year-over-year change percent
|
|
23 %
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year change
percent
|
|
26 %
|
|
|
|
|
|
|
|
Subscription and other
revenue
|
|
$
94
|
|
$
137
|
Foreign exchange effect
on 2022 subscription and other revenue using 2021 rates
|
|
—
|
|
|
Subscription and other
revenue excluding foreign exchange effect
|
|
$
94
|
|
|
Subscription and other
revenue year-over-year change percent
|
|
(31)%
|
|
|
Subscription and other
revenue excluding foreign exchange effect year-over-year change
percent
|
|
(31)%
|
|
|
|
|
|
|
|
International
revenue
|
|
$ 529
|
|
$
480
|
Foreign exchange effect
on 2022 international revenue using 2021 rates
|
|
27
|
|
|
International revenue
excluding foreign exchange effect
|
|
$ 556
|
|
|
International revenue
year-over-year change percent
|
|
10 %
|
|
|
International revenue
excluding foreign exchange effect year-over-year change
percent
|
|
16 %
|
|
|
|
|
|
|
|
International
advertising revenue
|
|
$ 495
|
|
$
435
|
Foreign exchange effect
on 2022 international advertising revenue using 2021
rates
|
|
27
|
|
|
International
advertising revenue excluding foreign exchange effect
|
|
$ 522
|
|
|
International
advertising revenue year-over-year change percent
|
|
14 %
|
|
|
International
advertising revenue excluding foreign exchange effect
year-over-year change percent
|
|
20 %
|
|
|
|
|
|
|
|
(1) To
better reflect our business opportunities, including the sale of
MoPub and the launch of Twitter Blue, we have updated the name of
"Data Licensing and Other Revenue" to "Subscription and Other
Revenue". This revenue line includes subscription revenue from the
Twitter Developer Platform, Twitter Blue, and other
subscription-related offerings.
|
View original
content:https://www.prnewswire.com/news-releases/twitter-announces-first-quarter-2022-results-301535206.html
SOURCE Twitter, Inc.