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Twitter (TWTR)

Participants
Krista Bessinger Vice President, Investor Relations
Jack Dorsey Chief Executive Officer
Ned Segal Chief Financial Officer
Douglas Anmuth JPMorgan
Lloyd Walmsley Deutsche Bank
Heath Terry Goldman Sachs
Ross Sandler Barclays
Justin Post Merrill Lynch
Eric Sheridan UBS
Youssef Squali SunTrust
Mark Mahaney RBC
Brian Nowak Morgan Stanley
Call transcript
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Operator

Good day, ladies and gentlemen. And welcome to the Twitter Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

I would now like to turn the call over to your host, Krista Bessinger, Vice President, Investor Relations. ahead. go Please

Krista Bessinger

Hi, earnings you. thanks joining for Great. call. everyone. QX conference our Thank And

We Ned Jack have and with us today.

remarks I keep call. read the lot shareholder and hope Before right format it. the SEC Relations Because start, wanted had our dive hour everyone with detail, brief remind into of they ago an of website of and and our a on a We letter questions. letter a everyone opening has about published then we’ll our Investor to the your chance to

please take us during also plans operational questions of make things We’ll asked we QX strategies. on outlook and call using Also forward-looking year Twitter, XXXX, so and #TWTR. and our Those full are like tweet our the statements. will @TwitterIR this for the

results of actual you and as not Our contemplated those differ performance. from future forward-looking an could by reported statements our consider results indication our should materially

these and our with the available We’re for later by especially making the on a Risk in the as section, law. a our update to Please disclaim look unless duty we of them required take information to us to our any at filings most forward-looking cause and statements based XX-K discussion in in of our could factors recent that Factors results SEC, XX-Qs today, differ.

non-GAAP certain Also, discuss call, financial measures. during will we this

will letter. on our webcast hours. results. Relations in on substitute those website available call We non-GAAP a our And is shareholder in reconciled to are audio have and These entirety in an being this measures and not comparable the its finally, directly GAAP few replay website to Investor financial be measures most our our Twitter for a be from intended GAAP

And with turn to like over it that, Jack. to I’d

Jack Dorsey

get on relevance about our quite will call. and our quarter focus compound into We’ve your Ned me for and joining few increasing before how Thanks for some morning. A time highlights sustainable to growth. for we questions. Good third talked ease-of-use

million refinement daily fourth XXXX increase also of we’re that Today, XXX million of steady to upon. quarter This year-over-year have usage the build to of share can this to proud we foundation of to to daily customers of the bring results is be the XX% attributed Twitter. This mDAU. added XX our fueled incredibly since nearly us an half strong quarter

The of our we’re refinement development In one steady in Twitter fundamentals the how to problems address order just part are we parallel, of portfolio. the better is rethinking works seeing.

break beginning on service. and example tweets this violates public One year, of work to harassment, the we terms our reports that conduct At conversation abuse resolved acting this is on identifying of health. proactively our of to from and of only

crossed any our week a bystander victim another rules identified violation. now threshold. violating report we verified proactively and the enforcement we’ve is Over for of or Today, has given take in the our half actions by abuse agents before to

appeals process that the robust correctness continue will enforcement. important victims with to increases steadily to removes is work our reporting because it and refine a much paired from percentage. increase burden We This of this more of

view, them we In outcomes. the to behind while to far to ability replies for tweets health, Another moderated hiding the we where be might the which fundamentals allowing the folks rethinking example from their have main quarter, lead still seen some to of this press. on experiments greater by tweets button is launched notable taken moderate conversation

now live and This Canada. Japan is US, the in

match following on-boarding much to people to evidence interest. time More this show Global as rollout focused their interest and Our have broadly, we daily and accounts make easier. opportunity on have we that network Twitter an use, of From forthcoming. spend a see to is that bunch finding

lists. of a to back make use To went address this, we only feature experts Twitter

switch on made get quarter - lists create, keep lists timeline, time. with, consume. home you want directly don't keep a easier up most your to of more creation We’ve over to to but Expect fast directly accounts and ability This your home to pin powerful follow. enabling easier and added importantly, we between the to capabilities timeline less list to

about produce In all us also for without We’re having right them. tweets prompt to State the to to from matching relevant your topic, topics tweets. that the following with the experimenting topic A Warriors to appended have relevant now a would will which to instance, allows timeline. include follow a option be accounts Golden topic, various follow follow tweet the

and time un-follow will more any we continue area you to course, add Of this is an around. can capabilities

more explain this, will Ned and revenue. Finally, on

we missteps seasonality ads, in some that, July and saw than admits bugs good had momentum. expected our strong Despite August. map September greater and advertiser and results Unfortunately, we in

better rebuilding but come equipped as we issues add issues was of than it to painful, we X fix increase sorts past. address longer in was and goal Still were our to Our map much and are existential technology identify across core we just agility. ago. stacks no these and exactly Because of work, to our X today this years engineering in

before. in our are position hiring ever, we is believe and more its learning who out people better, shipping are strongest of I faster, company prioritizing reach

regulatory this us the misleading environment. our of facing our evolving meet larger and has including in then ever information challenges confidence, increased All industry, can we

We’re deeply way Twitter. and a a these problems benefits not them that to way commit just principled addressing approaching in in all all openly

to with it And you. I’ll that, pass Ned. over Thank

Ned Segal

Jack. Thanks,

aggregate, that to highlight growth ads add We steps call. get reduced affected the partners. are to products our bugs and with by issues largely we affected product. or year-over-year of MAP a Q&A, target at but revenue measurement which want data discovered These took the Before few things QX. legacy in letter, to I in our and the ability points share mentioning merit relating outset remediate into In our to more three the bugs and

do as and expected. issues These better. in not We were control our operating to also that will personalization certain settings work and discovered were data we

expected and happening advertisers what’s continued that July value and on seasonality launching greater and core Twitter in a began continue also August. with than add We business resonate slower believe was connecting with of a to We One until and something over of summer Women’s our propositions of experienced the Cup lighter XXXX. this is August World XXXX. events and in this example part relatively compared XXXX big to in launches slate with comparing in due to in July the Cup Men’s World new

most growth to pronounced revenue sentiment globally remained ad pleased rebounded were in United in recovery States, with the September We the strong. advertiser double-digits

while performance described, Looking taking term. are to ads them in we to the issues expect product the near our we we ahead, business weigh continue to steps the overall of remediate on

year-over-year incorporated in Specifically, our for performance will in we the settings discussed and points moderate in from in likely more partial result expect issues revenue of of impact is three QX. data more reduced This MAP reflecting quarter QX QX our or in guidance. a personalization only or total QX, a growth impact impact in four full points and quarter versus into in

likely quarters, in of reflects visibility. our the current on based most our As outcomes range prior guidance

previously the already our We issues. have events September, lingering product and in product in expected the in along expect considered with and that of the QX, launches were rebound service and our or discussed headwinds we bookings that from happened have business the organic the ads strength

right confident the on strength believe priorities in company. across the fundamental remain of and Twitter we We the are focused

reinforced both consumer we confidence In our in our ads. and issues saw quarter strategy, in fact, this the

Twitter. see year-to-date to use product to in whole value to to of tremendous excited the world continue especially deliver for increasing us and and see driven We're strong opportunity get such mDAU front a to growth advertisers

With ready that, we’re to your Operator? questions. take

Operator

Please JPMorgan. [Operator from Anmuth Instructions] ahead. the Your question first of of go comes Douglas line

Your line is open.

Douglas Anmuth

taking I for questions. the two. have Thanks

how First MAP, you of data around could you XQ? about targeting and the just four issues points Ned around the kind that informs you’re at point of to help this they’ve MAP, little us impact more been understand and then on talking bit of kind then the degree just fixed that of when which about learned for a sharing and

And you outlook this same XXXX? expect investment discussed do nearly know OpEx about year track that next OpEx think four the I you it's XX% Thanks. and growth you’re big early. how on the to looks then do secondly, do But and you’ve it for year, priorities like for

Ned Segal

can makes I'll anything sense. take Okay. Jack it add Doug. Thanks, afterwards, if both.

question the on the product on related First issues.

came of particular the one course there wasn’t and these the of over day, these it things. quarter one up were So more than

couple examples, can a of come help which you give life. me them to Let

Twitter. put Among asked show we settings we the first can The timeline to ads we questions is, you we use asked best the people a series them device when – questions, a if you you. figure new your are to out to into we - our put of when before

do to using were working if It us turns even as not out asked we that expected that people wasn’t setting settings had device and so.

we be tweeted which when to often to with transparent So we it do expected. when that, when aren’t we things discovered people try working as about

the turned to ads it off a out show that two, figuring you And has setting, less expected. got, are as to people. input one because negative which revenue, we you’ve it’s impact That would so when work

get full quarter of instead quarter impact impact, QX. a partial So getting a you in

will specific share with across that A example partners not on their of where then but is platforms. second they see to so will advertisers, share campaigns, can data effectiveness MAP, the just with measurement typically who Twitter, we

setting share not a of their not was also have before we we ask on working with expected if we into That one them timeline, to. another questions and the people And intended were put we partners. which that data, can measurement passing data as we is

place, into stopped QX. remediation, although on remediation we yet in will the so So, that working are and of there effects we continue doing that isn’t and

would us share to you as aggregated when personalized asked not As remediation people data, can data. data their the to imagine, sharing opposed be have

come that quarter little them the then one negative if full remediate which a you’re to of were course hopefully found of thing, quarter’s working impact a to and there when this wasn't we you the two the even impact good to helped can be revenue. are get those things So issues life bit, out there but examples over

and early of although product and the revenue opening remarks the on that and you in growth back they we this reinforce about it’s at we letter the our I to quarter, the side our in and just comments the issues look talk saw too XXXX, DAU Secondly, where about strategy. the asked both things point to really some expenses

than it to quarter, it pleased been. this really to our was better been people We hiring better was ability are attract our has here come retention work to and has Twitter with than

that to count and XX% XX% believe grow about talked we in about head or continue past. we So more expenses will the grow can we’ve as

there early or picture changes out our lay perspective, plans out. will we that think but of set about to specific think as year, a too similar no from So, all priorities how play about a and we real about big next it’s think

hope we and hired to living this year. been people increases us the all We that mind so and of increases next on that to promoted merit cost will expenses, so and made. But people that in on stay do who have with keep is hope that natural get a increase there decisions based year we will already we’ve just give

Douglas Anmuth

Ned. you, Thank

Krista Bessinger

you. Thank

Next question please.

Operator

from Deutsche go Your next Lloyd question comes the of Bank. Please of ahead. line Walmsley

open. is line Your

Lloyd Walmsley

Thanks, Two can. I if

First, Sorry, where I Jack sense correctly or just the nearly just said I think came you when half, the for - of that Ned know, understood – nearly a from? If we you at us product growth refinements. half looked you came the Can from said user other half give of

coming acceleration XXXX much you And the that but you you’re at then you a do about to the of in was better I from growth, how more for on-boarding any specifically, started know, when think talk something it focus. have in, of DAU investing look is sense that you

in ability So do still it's improvement early growth? DAU faster drive product on-boarding innings you your to in feel like

Ned Segal

Lloyd. Thanks,

I’ll Let me Jack start question. and on-boarding turn on the to it

a So Twitter, levers about we think to experience it become help can we that about bring them part of and their we when great typically ways people lives. talk daily three give

is one first product improvements. The

whether Twitter improvements we’ve this years to the many last notifications the relevance, that of that the When was that are over Jack's impact on-boarding, done that You timeline better pace the around all they who it's over compound, that’s we of we home time, innovation it’s make to improve half and or mentioned quarter over almost great product product watching work new the benefited having. of real a and watching watching comments. the time. from period see people compound Well, or the to how longer our continue improvement drive

The all second drive events the the that around service. are to world, people that one are the happening

back not going we and may for back come there, not some don't they Now give good if or experience may them a time. when come they get to leave are

the think So be they driver events we these but at people to about are opportunities best we’re for a to adding ways when that that - us, are continue are service.

marketing which important when we’d people great back way is as product, comes it a one, again service, don’t the they not people third smaller, is frequently is to give all an still there, they the The lever may bring is marketing, as get but because we a but to to good come experience if back like.

me on-boarding. Let on Jack it to turn

Jack Dorsey

on-boarding. Lloyd So, on

been some time on-boarding know, say you in had I quite As we’ve talking a and about the lot we’ve for would fits that approach there. of and starts

and as follow gives believe a to again we to and Twitter network, work best works accounts. is confidence interest us my to find of it that interest a follow people of if related things we do the an do going lot and able lot right of remarks, now their back they're see when find more, One quickly opening

been testing also easier around get without related much interest So and follow and find to and work accounts. deploying to tools interest having all make both those have the to into we faster it your to topics do

those the is right up But intention app experiments. all right they’re bring on-boarding. we to So now, in of that

into interest tweets into give help show that if dramatically. particular a think expressing we website pick from will or app deep like up the in topic set accounts will also or will list pretty do the of immediately and a which to you rich or timeline, a say So find, basketball learning you able you be immediately cryptocurrency, your or a

So in And area surface confidence and into surface. that a topics. the interest testing the of the still and lot then in bring app around as experimenting we we’re phase get with we’ll every of

Lloyd Walmsley

you. Thank

Krista Bessinger

Thank you.

please. question Next

Operator

comes of line question Heath Goldman from next Your ahead. Sachs. Terry of go the Please

open. Your line is

Heath Terry

major to at from to you’re picture extent access this I’m access that monetize level, quarter data. and such data the about Thanks, a two of Twitter's of on maybe I more mean how curious, impact a does to Great. your ability bit Jack. to topic data a big these know the pieces is had - thinking toxic inventory this privacy point. a I

to be measurement do of have the particularly data and to needs that of does the But Twitter advertisers the the XX% you’ve grow revenue for pace got? kind got advertisers you to engagement able advertisers, kind longer be that it able kind direct for user you’ve that XX% with need that expect to you the in monetization and access response in to targeting of growth that tail growth

Jack Dorsey

Heath. Yeah.

the we and think foremost, on a our side led and number we people first into have revenue So over lot that what of it. we’re making also visibility sure our have how work with data using one, about and consumer products control

people to data. continue and all to exchange one our within step that's value to us our are controls giving work refine and that utilize easily we and is and visibility transparency So their accessible we clear settings as the make

in that we I confidence represents bugs say as hard of access more This back a team will today done more work our are and And and doesn't to a then we I in looking of to our these working these just quickly all lot have ago, rebuild our have the lot quick a core fix. lack identified two agility represent stack. that are ad because abilities years issues we’ve

them. in something and ad dealing get tech have fast we and we we’ve know, we the built the important bugs A the that we much of move particular, right. and – is can stack seen to past, lot you intense, Our on most that agility fix had MAP the we is with focus where more intend and in thing to -

looking data access what we this to to and problem, is not for, in discovered this is our remediating. that’s that I'm bugs So

Heath Terry

you. Thank

Krista Bessinger

Great.

Next question please.

Operator

Our next of the Please question Barclays. comes Ross go from line ahead. Sandler of

Your line is open.

Ross Sandler

Great. Thanks, guys.

back to Just headwind four quarter. a on in going the question the point fourth

some to of we’re persist talk assume XXXX going year? So the specific to be are here. fair to that next would issues to headwinds guidance going in I know that not are about technical it for these causing But

the recovered in letter US September. in had mentioned you And the that

or of That's that issues question. some from just and the first better was a event that the month recovery? was my sorting hence So, out

growth. are And strong you question international the second seeing DAU then is very a in

So of revenue those And which that trailing world talk can US, in upside international lines, coming you about regions is is from. of the your little bit. ad along a

because So offer monetization not is in but that’s the is like it in country that there color coming higher as [ph] Thanks. users Any potential. the be bugs places causing are are Japan may helpful? international deceleration would or on that

Jack Dorsey

a we two take questions, them. Thanks, at I’ll but Ross. four I can crack call counted and it

four the It’s at that we’re periods. about, bleed early things. on these we yet, because because points remediation, there over giving of four from hard some working impact some will but future points the XXXX talked for into be not QX, to more there those will So to quantify continued be both on or impact also from too we’re guidance

Twitter, is wasn’t was, saw the about launching just we this our when United really that the along but advertisers, from things there you States, services by often what’s connecting come those we just two double-digits, September, second - they about recovery remediation, The happening, to in September. that advertising and that in nicely of in not rebounded products United talked see new the the with always-on that was to led you'll think you and States if

us had we that gives saw ongoing in solace. The September. pronounced That’s that and we fact issues the comfort than the us more seasonality gave we double-digit that product were saw that anticipated. into when growth we incorporate continued what July the August issues that that Even

was things point so next to couple there. set out your of Then international, around a of questions

new DAU markets XX we top all the XX that breadth we real the people world, improvements a of continue areas our success. double-digits bringing felt thrilled is, who opportunities terms The in real be and DAU to have by in we’re past, have in used being service of Twitter use saw to less had it the over we are are that the we’ve but who grew both were Twitter, people frequently, where to all first people growth, in

an was broadly your revenue from question The international Japan, of part a perspective. around, last second more

you give there. a few to numbers Just

second grew would revenue year-over-year, is think inside international of that our Japan, So where help. some market X% I but context largest

we in year-over-year year X% down grew year-over-year quarter. were we in third Japan. Remember last So the XX%

business Japan, both up very service, of with that lots built with really In really proud with We video the ads. a relationships the and who largest with of great we’re MAP having connected big and advertisers with people use agencies the

bigger of is there MAP a it our in geographies. part Now, is than business other

more that comp So MAP so also it X% is - impact issues more was and were, geographies in a impacted MAP. from both other by up against tough these down that pronounced its

in opportunity this We be I’m partners excited the continue to headed really weekend. actually see to Japan. some about our of there,

the We although beneficiaries. an do to begin primary version have Japan the coming expect to bring in We improved in continue impact we MAP, will up be Olympics the of that ought to out of felt gradually. work be XXXX hard impact and to one XXXX in

Krista Bessinger

Great. Thank you.

Next question please.

Operator

Justin ahead. Our Merrill from line the question comes please Lynch, Post next go of of

line Your is open.

Justin Post

with I know DAU first, second, growth? advertisers in drive bounces your guess, one that ask around driven. Great. of you that the base, it's we is event churn And their metrics hear from then I is your seeing helping that user I’ll month-to-month, two. improvement are spend

each and more can the monthly Thank quarter? advertisers be growth consistent always-on and your on do platform on company what get more consist to the that make you. But more

Jack Dorsey

Hey. Thanks, Justin.

was a who even past really maybe we more the including lives it service things, But We daily one. of using talked have in used churn. are hadn't that at about it when the but made their people DAU, part - drove lots look of number are haven't what it

I topics two, them giving them when finding we people surfacing service home and wouldn't faster, the driving to conversations, growth relevance, because we who And all the benefit because timeline because to one think benefit. was But are accounts of to particular- it many easier DAU them. we’re faster, point are new follow things because to any seeing are underlying from better increased has or driving we’re the notifications metric making up from it these are benefit

services lots timeline, are Secondly, benefit do. of that time we the with day, companies you are the are they or ads on your believe were already you the advertising. connecting When open will from who always-on people can of with connecting there Twitter events products seeing their who where see all from

see for a the we baseball a World also to they or they connect end whether to would place Cup season are when the is it’s really big Women's to big launch messages and service, event, when want do you terrific new But resonated. the that with a beneficiary that want or the have we’ve that of that those of been product them

those all add on topics, you of happening up up on connect When up those the our product for of with end events across to of service. launches, with advertisers customers when what's Twitter all you every across opportunities their that you geographies, day add different types

Justin Post

Thank you.

Krista Bessinger

Great. next the comes question only and you enable also is we'll new take of And question the following, Thank of The the experience, on-boarding And users? the improve account user from not topic will it Twitter. but improve when retaining would @BitcoinMunger. from question you.

Ned Segal

the for question BitcoinMunger. Thanks

a As been area, broadly. it topics, a we example One interest use with have might topical of is particular accounts I - of a so experimenting as people opening that construct topic. I making mentioned both includes list and number remarks, this list, of a around of in better lot more my fit

and the instance crypto crypto that home has timeline. I within folks to for the all of I that can pin So a follow my right top list

see it to it. swipe to So I can quickly

The hit button that a see soon. to a that we’re rollout match iOS, able that you'll but it's and small on we now and with appended experimenting whenever we’ll topic, be to particular expand tweet a Is so far, in and a to doing right topic. might prompt it it a intend other follow thing that we put

then you’d and unfollow tweets follow bitcoin in at your you can tweet. you saw able more and DASH in topic topic Bitcoin this will to And if related timeline your the to case, that any Bitcoin appear around point. So be go

So us we're the feature of ton very and think a strong approach right do I our and early now, capability we think we'll to service. and a strength this test in but is for add

Krista Bessinger

Operator, Thanks, take please. next Jack. the we'll question

Operator

Our next question of Sheridan comes go Eric ahead. from please line UBS, of

line Your open. is

Eric Sheridan

much. Thanks so to advertising two Maybe the respect with metrics.

amount you of issues auction prices the people discovered the adjust MAP problem? some As on inventory reduce as the and you their product the quarter, of MAP the did an aware the see as ad in did through that you dropped could go against or people of bidding product became adds

pricing, the highlighted Thanks guys. video dynamic on mix you year-on-year some pricing becomes and auction? pricing video dynamics so but much, it. video and MAP Is a familiarity more bigger basis? of the around increasing with the then the between also get a if portion sequential in video people or And pricing is What of

Ned Segal

I’ll Eric. those. Thanks, Well. take

didn’t we any make So changes.

an service auction One having things of great the things that is based about naturally. adjust

And for less them. for is one so - different if bid makes from formats, across other right they'll sense inputs type ad that or format demand the inputs price advertisers fewer the of there that use

back before sometimes times to advertisers format things wait they one their campaign change to or and from And move things other take they come and elsewhere. another for pause

about or that in increased step formats grow we’re you the relevant ads better we’re that DAU tells selling pleased at about If people, look front more putting greater and engagements metrics XX% we’ve continues selling to back that our so see more which share, of than relevant you that. that ads you

that mix then for changes would That think video, around would from like to for And about about than was cost really largely XX%. a ad I reflects MAP pricing. down engagement more shift

you ads and opportunity continue improve formats about better to relevance, these is exist come of our to us out opportunity opportunities existing ad in improved to better that around ad to to there's selling formats ad with lots copy formats today. ad continue put When for just generally, one of like the more and without think there just also still But MAP. versions

our more XX ads at video served longer than seconds. have We still than of half being

rates As compelling better, the they’re X much are that are person like Twitter, seconds XX you’d them ads are seconds are or imagine for the much more effective service advertiser, for on watching that completion a longer. much more for video that the knows they

one certainly the of more example help and something ad would everybody but great do engagements that selling associated improve a all ad can can we metrics. require and That’s doesn't

Since surprise you're a should probably related be have CPMs actually for up and we've period it wondering we’ve bit product this because it last talked the issues here about, talked the about time that been of that of were CPMs down quarter. no

Krista Bessinger

you. Thank

Next question please.

Operator

next comes SunTrust. of question Youssef Please open. Squali line your from line of Our is the ahead, go

Youssef Squali

you. me please. thank Great, questions Two from

QX speak and what of we think you impact the at should XXXX, you look we is in can into Ned to QX, the incurred in kind bake [ph] an First of guidance what there do elements cost as to baked from kind bug issue? Were any also additional costs

restrictions us maybe was on ads political year, you them And XXXX it kind spend any I getting again big remind start as and Thanks. you a in XXXX soon? at pretty as political Jack, we look as can of putting how you are big guess

Ned Segal

Okay.

to up wouldn't around we shifting preferred The cost a when we question end first from on bugs. the costs - have come from bugs. the So is impact this like are things. when we're may say other There remediation where we resourcing spending sometimes perspective, biggest on people I time, that work where from work things that more their the up

So of that can kind different a impact. have

against this investing the course out in that or going like against quarter. of think MAP, control. we've look things XX% product help year, ad we've talked are where and should that are version our a growth about But expense at about percent a things when that we growth over new of those came address for us the server, coming the going they we up issues headcount rebuilding as these We been the we so feel with product related related issues really them validation of that that XX% the are

Jack Dorsey

XXXX around about within the we the integrity conversation first health and our So elections priority think is and on how health. conversations them of

paying at are at that put we do transparency So how and XXXX, that misinformation we ads. our for with we a the to also lot information dynamics sure sooner, issue of attention making people candidate – how spending but misleading have lot and focus play, all have did and who and on both people into specifically we looking of broken haven't out what affects, visibility political, is a

increase On look opportunities role the where service, our political improve we advertising broadly and can of we then intend and transparency to the at it. continue to look to the on for service

course update this priority. make, our you we top any with but of will decisions remains all or We findings,

Ned Segal

add, ads to go Hey, for already, there comments. talked its Youssef. A give mid-terms XXXX couple just than some you with about million of out the We were Jack's political us. things and to $X to financial less

whether impact We be political one principled really that for those it's from the try about make or to you advertising, we election. around decisions sense a how just give the And and otherwise. numbers

world, to improve and think how just improve through we happening elections to the are the all Twitter time. States, great people, all United the all world over in on time, so but we the to the get all over there course a Of the our to give experience policies not opportunity

Youssef Squali

Okay. Thank you.

Krista Bessinger

Thank you.

Next question please.

Operator

from question next RBC. of comes Our of Please go ahead. Mark Mahaney the line

Your line is open.

Mark Mahaney

the missed you of to the due the quarter seasonality, product in was quick other. of this Could impact the quantify the mishaps Thanks. in percentage one versus shortfall what A between questions. couple revenue

number a a more seems would products or the it you or large had we for a that one it or -like just political World have percentage have with driving you what driving it going and that's seasonality doesn't more part whatever events, something, to of didn't you're events you need you MAP it's there Twitter traffic. elections they like ad up think or or And new forwards, eventuality come of maybe Secondly, going term have therefore, traffic account have, for. if revenue really big just like shortfall, third, like of seem interest Cup of you a bit to is seasonality,

like didn't maybe going happen seems some you there happen. It thinking that events to I you were Am that that about thought right? were

business, of key it dependency pretty help us straightforward, issue seems than the revenue business that the like the through rather Just seems the having on the ad business, think seasonality? ads events,

Ned Segal

Mark. Thanks,

couple things there. So, of

so of in we the mentioned that. product more pronounced or couple points be on related the August more was had that Seasonality that anticipated top of pointed all the - would things impact than July we that and on we out, that three First went from from the through. seasonality we issues

with ultimately more advertising. fewer geography-to-geography, around a work down a It from mobile broken compelling us, formats also launch strength their application objectives the is version more around year-to-year. people past, will faster, an not we and much We that to seen to as help where give that new doing same to we've out the same from helping better advertising the percentage of MAP that funnel from the haven't just better out the response as direct in continue because business. work opportunity should not a are impressions the around more things of with come area in It promotion, more targeting, but realize think broadly quarter-to-quarter, around campaigns varies we recent as it,

the question in like around it I just second sometimes think term combination against came Women's happened. new I your Men's Then, the Cup one another the that think of World versus events you comps Cup up a was with, This things 'XX. is in don't that as it's event where World about the about 'XX one

what's They're to up happened add right and to as just the and we things up July how great we about when this scored, see bring just be. events them we when are year there expected playing play to being where they them think They and they ended terrific goals we ended not compare well. how the last expected But August great and to out. out advertising are when we that talk opportunities after had service, people to to examples that happening, of the up about

that in not that particular double-digits confidence related the set more issues of that. to than in gives helps. So our read September us with much I'm that States with rebounded a product Hope into I and that fact strength the sure it similar United

Krista Bessinger

says, account matures Scott will cash uses next you. the of it's and you take debt from remaining Twitter going XXXX Thank I he address noting forward. about Kessler. question of from the comes can Twitter, And that it XXXX. cash, of I'm And you're uses in

potential what and/or XXXX uses other about there M&A, since So for balance purchases. your sheet like acquisition healthy no have been stock material

Jack Dorsey

Thanks, Scott.

that billion. this repaid repaid we from $XXX a generate or also which that a little did about last pre-fund cash million convert more is completely financing a we than repaid. $X maturity, we $XXX of quarter We did million it and year this we but to largely that So

business often around When we use ourselves benefiting think any We through the and of cash, optimal able being in think shareholders. our environment. think about challenge of about terms the to we run uses about

that So should we always we look cash. other at using ways our be

give great we acquiring about teams. people just who terrific of also company year, further we add the purpose. think it's to about a acquisitions, about think and and us way nine done you We can acquisitions, to teams but We've those to when think our for great this people a sense,

we adding about few in often as we in We've much past acquiring a acquire of well think done as something and terms we done than can around, terrific the build can but We challenge recent those technology it. products. faster ourselves haven't of where

of so an see use the and advertisers. have see in drive the DAU that outcomes from We balance us for delivering, to we rest to perspective that anything against we we've much growth great to to opportunity the service improve ad ad products the carefully so the opportunities the improve that that world we can deliver continue front Twitter get to continue of to to formats to acquisition been

cash the our to repayment moved the thinking a balance around changes bit no on has based cash So around generation. although the and

Krista Bessinger

Thanks, the operator, take Ned. question we'll And next please.

Operator

from of of line Stanley. Nowak Morgan comes Please Brian go question next ahead. the Our

open. is line Your

Brian Nowak

have two. Thanks for my taking I questions.

go that demand you given advertiser that Ned, and of saw, sort Just, the to changes naturally auction adjusted. of back just question sort the of and that market on kind it to you talked adjusted how about

is that steps, XXXX getting you you will try of or think and should to your take? about fixing as kind way in how How of specific whether overall through auction data to to it bugs have order different take density, bidding the sets improve we into long the the headwind work

into then some more advertising, And to advertisers past, talked I still Thanks. DR through to know more you one, the key the in and the or and DR take of really talk about steps second budgets? two one just efforts bring on to on advertisers the crack bring us

Jack Dorsey

Brian. Thanks,

first auction what on around So we the question do. dynamics and can

So, first surface step look back, the when across geographies, service, across you like one and more constrained across we year. we're times of across constrained feel we demand still supply areas,

to billion in make and a more year, that to advertisers, products XX% market connect that services to do Twitter. the should continuing that against we're what's new more So ads happening case Twitter grows $XXX on $XXX to should launches launch and more digital those they invest on they with

That to from moving Super to available, XX same X advertisers that the they be in perspective. better auction One terms Bowl of that we the way there with to back whom is things to and those ought had think the still improve relevance, dynamics are we funnel on advertising continuing to along make the formats ought the from the Twitter. the if all time, are about case, it XX is at down types go on of that us the help Bowl, Twitter but of to need you to Super

we help Think like how more anything for we or realize about other fewer can that. impressions that people somebody with their impressions ads many MAP, to things leaves without show objectives if changing

to question, the and do little bringing response answered can of bit I around Your already, service. direct a what next but we more advertisers

time. lead more Twitter. to customers type where business MAP their response over have direct we should of to a work advertisers opportunities bringing in reaching terms we advertisers And help smaller more nice service, our the in So on

not know And Twitter. on we and do got the work millions in we service, we've than recent where that is reaching But could chosen case past. we we've right we make help them of small the around businesses It's are to the where an the our that's there today. throughout in now, more place a other have area But prioritized to improvements customers to them first. things prioritize better engineering that

Brian Nowak

Great. Thanks.

Krista Bessinger

you, Thank operator.

are of think much out we I pretty time.

will that Thank be think I our you. question. last So

Jack Dorsey

year you Twitter. all on you your opens. joining in see interest and Okay. Twitter next with We report QX and February market full on before to speaking us. X, our quarter. we Thanks the earnings for appreciate We'll look We'll forward the

Operator

and participating. call. today's concludes Ladies gentlemen, Thank you this conference for

You may now disconnect.