SAN FRANCISCO, Feb. 9, 2021 /PRNewswire/ -- Twitter, Inc.
(NYSE: TWTR) today announced financial results for its fourth
quarter and fiscal year 2020.
"2020 was an extraordinary year for Twitter. We are more proud
than ever to serve the public conversation, especially in these
unprecedented times," said Jack
Dorsey, Twitter's CEO. "We reported a 27% year-over-year
increase in mDAU in Q4 2020, reaching an average of 192 million.
Our product changes to date are promoting healthier conversations
for those who use our service, including advertisers and partners,
and we are excited about our plans to continue innovating in
2021."
"We delivered record revenue of $1.29
billion in Q4, up 28% year over year, reflecting
better-than-expected performance across all major products and
geographies," said Ned Segal,
Twitter's CFO. "We made significant progress on our brand and
direct response products in advance of the recent relaunch of our
Mobile Application Promotion (MAP) offering. Advertisers are
benefitting from new ad formats, stronger attribution, and improved
targeting, resulting in a 31% year-over-year increase in total ad
revenue and greater than 50% year-over-year growth in MAP revenue
in Q4."
Fiscal Year 2020 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.
- 2020 revenue was $3.72 billion,
an increase of 7% year over year.
- 2020 costs and expenses totaled $3.69
billion, an increase of 19% year over year. This resulted in
operating income of $27 million and
1% operating margin.
- 2020 net loss was $1.14 billion,
representing a net margin of -31% and diluted EPS of -$1.44. This compares to 2019 net income of
$1.47 billion, representing a net
margin of 42% and diluted EPS of $1.87. Both periods were affected by non-cash,
tax related adjustments as described below.
-
- In 2020, excluding a deferred tax asset valuation allowance of
$1.10 billion and corresponding
non-cash income tax expense based primarily on cumulative taxable
losses driven primarily by COVID-19, adjusted net loss was
$34 million, adjusted net margin was
-1%, and adjusted diluted EPS was -$0.04.
- In 2019, excluding an income tax benefit from the establishment
of deferred tax assets related to intra-entity transfers of
intangible assets of $1.21 billion,
adjusted net income was $259 million,
adjusted net margin was 7%, and adjusted diluted EPS was
$0.33.
Fourth Quarter 2020 Operational and Financial
Highlights
- Q4 revenue totaled $1.29 billion,
an increase of 28% year over year or 27% on a constant currency
basis.
-
- Advertising revenue totaled $1.15
billion, up 31% year over year or 30% on a constant currency
basis.
-
- Total ad engagements increased 35% year over year.
- Cost per engagement (CPE) decreased 3% year over year.
- Data licensing and other revenue totaled $134 million, an increase of 9% year over
year.
- US revenue totaled $733 million,
an increase of 24% year over year.
- International revenue totaled $556
million, an increase of 34% year over year or 32% on a
constant currency basis.
- Q4 costs and expenses totaled $1.04
billion, an increase of 21% year over year. This resulted in
operating income of $252 million and
20% operating margin, compared to operating income of $153 million and 15% operating margin in the same
period of the previous year.
- Stock-based compensation (SBC) expense grew 27% year over year
to $128 million and was approximately
10% of total revenue.
- Q4 net income was $222 million,
representing a net margin of 17% and diluted EPS of $0.27. This compares to net income of
$119 million, a net margin of 12% and
diluted EPS of $0.15 in the same
period of the previous year.
- Net cash provided by operating activities in the quarter was
$330 million, compared to
$277 million in the same period last
year. Capital expenditures totaled $292
million, compared to $150
million in the same period last year, driven by
infrastructure investments in data center build-outs to support
audience growth and product innovation.
- Average mDAU was 192 million for Q4, compared to 152 million in
the same period of the previous year and compared to 187 million in
the previous quarter.
-
- Average US mDAU was 37 million for Q4, compared to 31 million
in the same period of the previous year and compared to 36 million
in the previous quarter.
- Average international mDAU was 155 million for Q4, compared to
121 million in the same period of the previous year and compared to
152 million in the previous quarter.
Outlook
As we enter 2021, our objectives are similar
to previous years and our success will best be measured by our
ability to grow our audience and deliver financial results in line
with our guidance.
We expect to grow headcount by more than 20% in 2021, especially
in engineering, product, design, and research. Given the hiring and
investment decisions made in 2020 and previous years, along with
anticipated 2021 headcount growth, we expect total costs and
expenses to grow 25% or more in 2021, ramping in absolute dollars
over the course of the year. Our investments also include the final
buildout of a new data center in 2021, adding capacity to support
audience and revenue growth.
Finally, assuming the global pandemic continues to improve and
that we see modest impact from the rollout of changes associated
with iOS 14, we expect total revenue to grow faster than expenses
in 2021. How much faster will depend on our execution on our direct
response roadmap and macroeconomic factors.
For Q1'21, we expect:
- Total revenue to be between $940
million and $1.04 billion
- GAAP operating income to be between a loss of $50 million and break even
For FY21, we expect:
- Stock-based compensation expense to be between $525 million and $575
million
- Capital expenditures to be between $900
million and $950
million
Note that our outlook for Q1 and the full year 2021 reflects
foreign exchange rates as of January
2021.
For more information regarding the non-GAAP financial measures
discussed in this press release, please see "Non-GAAP Financial
Measures" and "Reconciliation of GAAP to Non-GAAP Financial
Measures" below.
Appendix
Fourth Quarter and Full Year 2020 Webcast and Conference Call
Details
Twitter will host a conference call today,
Tuesday, February 9, 2021, at
3pm Pacific Time (6pm Eastern Time) to discuss financial results
for the fourth quarter and full fiscal year 2020. The company will
be following the conversation about the earnings announcement on
Twitter. To have your questions considered during the Q&A,
Tweet your question to @TwitterIR using $TWTR. To listen to a live
audio webcast, please visit the company's Investor Relations page
at investor.twitterinc.com. Twitter has used, and intends to
continue to use, its Investor Relations website and the Twitter
accounts of @jack, @nedsegal, @Twitter, and @TwitterIR as means of
disclosing material nonpublic information and for complying with
its disclosure obligations under Regulation FD.
First Quarter 2021 Earnings Release Details
Twitter
expects to release financial results for the first quarter of 2021
on April 29, 2021, after market
close. Twitter will host a conference call on the same day to
discuss these financial results at 3pm
Pacific Time (6pm Eastern
Time).
About Twitter, Inc.
Twitter (NYSE: TWTR) 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 or Twitter
applications that are able to show ads. Average mDAU for a period
represents the number of mDAU on each day of such period divided by
the number of days for such period. Changes in mDAU are a measure
of changes in the size of our daily logged in or otherwise
authenticated active total accounts. To calculate the
year-over-year change in mDAU, we subtract the average mDAU for the
three months ended in the previous year from the average mDAU for
the same three months ended in the current year and divide the
result by the average mDAU for the three months ended in the
previous year. Additionally, our calculation of mDAU is not based
on any standardized industry methodology and is not necessarily
calculated in the same manner or comparable to similarly titled
measures presented by other companies. Similarly, our measures of
mDAU growth and engagement may differ from estimates published by
third parties or from similarly titled metrics of our competitors
due to differences in methodology.
The numbers of mDAU presented in our earnings materials are
based on internal company data. While these numbers are based on
what we believe to be reasonable estimates for the applicable
period of measurement, there are inherent challenges in measuring
usage and engagement across our large number of total accounts
around the world. Furthermore, our metrics may be impacted by our
information quality efforts, which are our overall efforts to
reduce malicious activity on the service, inclusive of spam,
malicious automation, and fake accounts. For example, there are a
number of false or spam accounts in existence on our platform. We
have performed an internal review of a sample of accounts and
estimate that the average of false or spam accounts during the
fourth quarter of 2020 represented fewer than 5% of our mDAU during
the quarter. The false or spam accounts for a period represents the
average of false or spam accounts in the samples during each
monthly analysis period during the quarter. In making this
determination, we applied significant judgment, so our estimation
of false or spam accounts may not accurately represent the actual
number of such accounts, and the actual number of false or spam
accounts could be higher than we have estimated. We are continually
seeking to improve our ability to estimate the total number of spam
accounts and eliminate them from the calculation of our mDAU, and
have made improvements in our spam detection capabilities that have
resulted in the suspension of a large number of spam, malicious
automation, and fake accounts. We intend to continue to make such
improvements. After we determine an account is spam, malicious
automation, or fake, we stop counting it in our mDAU, or other
related metrics. We also treat multiple accounts held by a single
person or organization as multiple mDAU because we permit people
and organizations to have more than one account. Additionally, some
accounts used by organizations are used by many people within the
organization. As such, the calculations of our mDAU may not
accurately reflect the actual number of people or organizations
using our platform.
In addition, geographic location data collected for purposes of
reporting the geographic location of our mDAU is based on the IP
address or phone number associated with the account when an account
is initially registered on Twitter. The IP address or phone number
may not always accurately reflect a person's actual location at the
time they engaged with our platform. For example, someone accessing
Twitter from the location of the proxy server that the person
connects to rather than from the person's actual location.
We regularly review and may adjust our processes for calculating
our internal metrics to improve their accuracy.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements generally relate to future
events or Twitter's future financial or operating performance. In
some cases, you can identify forward-looking statements because
they contain words such as "may," "will," "should," "expects,"
"plans," "anticipates," "going to," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts,"
"potential," or "continue," or the negative of these words or other
similar terms or expressions that concern Twitter's expectations,
strategy, priorities, plans, or intentions. Forward-looking
statements in this press release include, but are not limited to,
statements regarding Twitter's future financial and operating
performance, including its outlook, guidance and long-term mDAU
goals, as well as the factors, assumptions and variables underlying
Twitter's outlook, guidance and goals; Twitter's plans for 2021,
including product development and planned investments; the impact
of the COVID-19 pandemic and related responses of businesses and
governments to the pandemic on Twitter's operations and operating
results, and Twitter's expectations regarding future capital
expenditures and other expenses, including its SBC expense.
Twitter's expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. These risks include the
possibility that: the COVID-19 pandemic and related impacts will
continue to adversely impact our business, financial condition, and
operating results and the achievement of our strategic objectives
as well as the markets in which we operate and worldwide and
regional economies; Twitter's total accounts and engagement do not
grow or decline; Twitter's strategies, priorities, or plans take
longer to execute than anticipated; Twitter's new products and
product features do not meet expectations and fail to drive mDAU
growth; advertisers continue to reduce or discontinue their
spending on Twitter; data partners reduce or discontinue their
purchases of data licenses from Twitter; and Twitter experiences
expenses that exceed its expectations. The forward-looking
statements contained in this press release are also subject to
other risks and uncertainties, including those more fully described
in Twitter's Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 and Quarterly
Reports on Form 10-Q for the fiscal quarters ended March 31, 2020, June 30,
2020 and September 30, 2020,
each filed with the Securities and Exchange Commission. Additional
information will also be set forth in Twitter's Annual Report on
Form 10-K for the fiscal year ended December
31, 2020. The forward-looking statements in this press
release are based on information available to Twitter as of the
date hereof, and Twitter disclaims any obligation to update any
forward-looking statements, except as required by law.
Non-GAAP Financial Measures
To supplement Twitter's financial information presented in
accordance with generally accepted accounting principles in
the United States of America, or
GAAP, Twitter considers certain financial measures that are not
prepared in accordance with GAAP, including revenues excluding
foreign exchange effect, which we refer to as on a constant
currency basis, non-GAAP income before income taxes, non-GAAP
provision (benefit) for income taxes, non-GAAP net income (loss),
non-GAAP diluted net income (loss) per share, adjusted EBITDA,
non-GAAP costs and expenses, adjusted net income (loss), adjusted
net margin, adjusted diluted net income (loss) per share, and
adjusted free cash flow. In order to present revenues on a constant
currency basis for the fiscal year and quarter ended December 31, 2020, Twitter translated the
applicable measure using the prior year's monthly exchange rates
for its settlement currencies other than the US dollar. Twitter
defines non-GAAP income before income taxes as income (loss) before
income taxes adjusted to exclude stock-based compensation expense,
amortization of acquired intangible assets, non-cash interest
expense related to convertible notes, non-cash expense related to
acquisitions, impairment (gain) on investments in privately held
companies, restructuring charges, and one-time nonrecurring gain,
if any; Twitter defines non-GAAP provision (benefit) for income
taxes as the current and deferred income tax expense commensurate
with the non-GAAP measure of profitability using the estimated
annual effective tax rate, which is dependent on the jurisdictional
mix of earnings; and Twitter defines non-GAAP net income (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
nonrecurring gain, if any, and adjustment to income tax expense
based on the non-GAAP measure of profitability using the estimated
annual effective tax rate, which is dependent on the jurisdictional
mix of earnings. Non-GAAP diluted net income (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 (benefit) for income
taxes, restructuring charges, and one-time nonrecurring gain, if
any. Twitter defines non-GAAP costs and expenses as total costs and
expenses adjusted to exclude stock-based compensation expense,
amortization of acquired intangible assets, non-cash expense
related to acquisitions, restructuring charges, and one-time
nonrecurring gain, if any. We have presented adjusted net income
(loss) solely to exclude the income tax benefit from the
establishment of deferred tax assets related to intra-entity
transfers of intangible assets in the year ended December 31, 2019, and the income tax provision
from the establishment of a valuation allowance against the
deferred tax assets in the year ended December 31, 2020, and no other adjustments were
made in the calculation of this measure. Adjusted net margin is
calculated by dividing adjusted net income (loss) by GAAP revenue.
Adjusted diluted net income (loss) per share is calculated by
dividing adjusted net income (loss) by GAAP diluted share count.
Adjusted free cash flow is GAAP net cash provided by operating
activities less capital expenditures (i.e., purchases of property
and equipment including equipment purchases that were financed
through finance leases, less proceeds received from the disposition
of property and equipment).
Twitter is presenting these non-GAAP financial measures to
assist investors in seeing Twitter's operating results through the
eyes of management, and because it believes that these measures
provide an additional tool for investors to use in comparing
Twitter's core business operating results over multiple periods
with other companies in its industry.
Twitter believes that revenues on a constant currency basis,
non-GAAP income before income taxes, non-GAAP provision (benefit)
for income taxes, non-GAAP net income (loss), non-GAAP diluted net
income (loss) per share, adjusted EBITDA, non-GAAP costs and
expenses, adjusted net income (loss), adjusted net margin, and
adjusted diluted net income (loss) per share provide useful
information about its operating results, enhance the overall
understanding of Twitter's past performance and future prospects,
and allow for greater transparency with respect to key metrics used
by Twitter's management in its financial and operational
decision-making. Twitter uses these measures to establish budgets
and operational goals for managing its business and evaluating its
performance.
Twitter believes that revenues on a constant currency basis is a
useful metric that facilitates comparison to its historical
performance. Twitter believes that non-GAAP net income (loss),
non-GAAP diluted net income (loss) per share, adjusted EBITDA,
non-GAAP costs and expenses, adjusted net income (loss), adjusted
net margin, and adjusted diluted net income (loss) per share help
identify underlying trends in its business that could otherwise be
masked by expenses and one-time gains or charges, 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.
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:
ir@twitter.com
Press:
press@twitter.com
TWITTER,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) (Unaudited)
|
|
|
|
December 31,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,988,429
|
|
|
$
|
1,799,082
|
|
Short-term
investments
|
|
5,483,873
|
|
|
4,839,970
|
|
Accounts receivable,
net
|
|
1,041,743
|
|
|
850,184
|
|
Prepaid expenses and
other current assets
|
|
123,063
|
|
|
130,839
|
|
Total current
assets
|
|
8,637,108
|
|
|
7,620,075
|
|
Property and
equipment, net
|
|
1,493,794
|
|
|
1,031,781
|
|
Operating lease
right-of-use assets
|
|
930,139
|
|
|
697,095
|
|
Intangible assets,
net
|
|
58,338
|
|
|
55,106
|
|
Goodwill
|
|
1,312,346
|
|
|
1,256,699
|
|
Deferred tax assets,
net
|
|
796,326
|
|
|
1,908,086
|
|
Other
assets
|
|
151,039
|
|
|
134,547
|
|
Total
assets
|
|
$
|
13,379,090
|
|
|
$
|
12,703,389
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
194,281
|
|
|
$
|
161,148
|
|
Accrued and other
current liabilities
|
|
662,965
|
|
|
500,893
|
|
Convertible notes,
short-term
|
|
917,866
|
|
|
—
|
|
Operating lease
liabilities, short-term
|
|
177,147
|
|
|
146,959
|
|
Finance lease
liabilities, short-term
|
|
567
|
|
|
23,476
|
|
Total current
liabilities
|
|
1,952,826
|
|
|
832,476
|
|
Convertible notes,
long-term
|
|
1,875,878
|
|
|
1,816,833
|
|
Senior notes,
long-term
|
|
692,994
|
|
|
691,967
|
|
Operating lease
liabilities, long-term
|
|
819,748
|
|
|
609,245
|
|
Deferred and other
long-term tax liabilities, net
|
|
31,463
|
|
|
24,170
|
|
Other long-term
liabilities
|
|
36,099
|
|
|
24,312
|
|
Total
liabilities
|
|
5,409,008
|
|
|
3,999,003
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
4
|
|
|
4
|
|
Additional paid-in
capital
|
|
9,167,138
|
|
|
8,763,330
|
|
Treasury
stock
|
|
(5,297)
|
|
|
—
|
|
Accumulated other
comprehensive loss
|
|
(66,094)
|
|
|
(70,534)
|
|
Retained earnings
(accumulated deficit)
|
|
(1,125,669)
|
|
|
11,586
|
|
Total stockholders'
equity
|
|
7,970,082
|
|
|
8,704,386
|
|
Total liabilities and
stockholders' equity
|
|
$
|
13,379,090
|
|
|
$
|
12,703,389
|
|
TWITTER,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share
data) (Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
|
$
|
1,289,041
|
|
|
$
|
1,007,341
|
|
|
$
|
3,716,349
|
|
|
$
|
3,459,329
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
432,924
|
|
|
314,008
|
|
|
1,366,388
|
|
|
1,137,041
|
|
Research and
development
|
|
247,940
|
|
|
198,240
|
|
|
873,011
|
|
|
682,281
|
|
Sales and
marketing
|
|
244,002
|
|
|
241,561
|
|
|
887,860
|
|
|
913,813
|
|
General and
administrative
|
|
112,251
|
|
|
100,648
|
|
|
562,432
|
|
|
359,821
|
|
Total costs and
expenses
|
|
1,037,117
|
|
|
854,457
|
|
|
3,689,691
|
|
|
3,092,956
|
|
Income from
operations
|
|
251,924
|
|
|
152,884
|
|
|
26,658
|
|
|
366,373
|
|
Interest
expense
|
|
(40,166)
|
|
|
(26,377)
|
|
|
(152,878)
|
|
|
(138,180)
|
|
Interest
income
|
|
13,101
|
|
|
33,927
|
|
|
88,178
|
|
|
157,703
|
|
Other income
(expense), net
|
|
(840)
|
|
|
(2,340)
|
|
|
(12,897)
|
|
|
4,243
|
|
Income (loss) before
income taxes
|
|
224,019
|
|
|
158,094
|
|
|
(50,939)
|
|
|
390,139
|
|
Provision (benefit)
for income taxes
|
|
1,903
|
|
|
39,321
|
|
|
1,084,687
|
|
|
(1,075,520)
|
|
Net income
(loss)
|
|
$
|
222,116
|
|
|
$
|
118,773
|
|
|
$
|
(1,135,626)
|
|
|
$
|
1,465,659
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.28
|
|
|
$
|
0.15
|
|
|
$
|
(1.44)
|
|
|
$
|
1.90
|
|
Diluted
|
|
$
|
0.27
|
|
|
$
|
0.15
|
|
|
$
|
(1.44)
|
|
|
$
|
1.87
|
|
Weighted-average
shares used to compute net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
793,789
|
|
|
776,647
|
|
|
787,861
|
|
|
770,729
|
|
Diluted
|
|
816,368
|
|
|
788,684
|
|
|
787,861
|
|
|
785,531
|
|
TWITTER,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands) (Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
222,116
|
|
|
$
|
118,773
|
|
|
$
|
(1,135,626)
|
|
|
$
|
1,465,659
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
128,708
|
|
|
116,473
|
|
|
495,177
|
|
|
465,549
|
|
Stock-based
compensation expense
|
|
128,184
|
|
|
101,296
|
|
|
474,932
|
|
|
378,025
|
|
Amortization of
discount on convertible notes
|
|
27,000
|
|
|
20,047
|
|
|
101,733
|
|
|
113,298
|
|
Bad debt
expense
|
|
1,914
|
|
|
422
|
|
|
18,775
|
|
|
3,083
|
|
Deferred income
taxes
|
|
(4,596)
|
|
|
15,782
|
|
|
(36,978)
|
|
|
84,369
|
|
Deferred tax assets
establishment related to intra-entity transfers of intangible
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,206,880)
|
|
Deferred tax assets
valuation allowance establishment
|
|
—
|
|
|
—
|
|
|
1,101,374
|
|
|
—
|
|
Impairment of
investments in privately-held companies
|
|
—
|
|
|
—
|
|
|
8,842
|
|
|
1,550
|
|
Other
adjustments
|
|
(3,008)
|
|
|
(3,487)
|
|
|
(10,764)
|
|
|
(19,989)
|
|
Changes in assets and
liabilities, net of assets acquired and liabilities assumed from
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(285,851)
|
|
|
(160,932)
|
|
|
(188,039)
|
|
|
(67,000)
|
|
Prepaid expenses and
other assets
|
|
31,163
|
|
|
(8,386)
|
|
|
6,398
|
|
|
(29,602)
|
|
Operating lease
right-of-use assets
|
|
46,288
|
|
|
45,018
|
|
|
168,000
|
|
|
149,880
|
|
Accounts
payable
|
|
23,954
|
|
|
15,545
|
|
|
18,232
|
|
|
2,946
|
|
Accrued and other
liabilities
|
|
46,848
|
|
|
52,303
|
|
|
123,345
|
|
|
92,681
|
|
Operating lease
liabilities
|
|
(32,420)
|
|
|
(35,675)
|
|
|
(152,531)
|
|
|
(130,205)
|
|
Net cash provided by
operating activities
|
|
330,300
|
|
|
277,179
|
|
|
992,870
|
|
|
1,303,364
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(295,525)
|
|
|
(151,615)
|
|
|
(873,354)
|
|
|
(540,688)
|
|
Proceeds from sales of
property and equipment
|
|
3,355
|
|
|
1,868
|
|
|
9,170
|
|
|
6,158
|
|
Purchases of
marketable securities
|
|
(1,168,412)
|
|
|
(1,857,429)
|
|
|
(6,272,395)
|
|
|
(5,798,111)
|
|
Proceeds from
maturities of marketable securities
|
|
987,343
|
|
|
776,235
|
|
|
4,554,238
|
|
|
4,928,097
|
|
Proceeds from sales of
marketable securities
|
|
167,367
|
|
|
193,791
|
|
|
1,092,754
|
|
|
367,116
|
|
Purchases of
investments in privately-held companies
|
|
(8,073)
|
|
|
—
|
|
|
(11,912)
|
|
|
(51,163)
|
|
Proceeds from sales of
long-lived assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,781
|
|
Business combinations,
net of cash acquired
|
|
(13,731)
|
|
|
(9,362)
|
|
|
(48,016)
|
|
|
(29,664)
|
|
Other investing
activities
|
|
—
|
|
|
—
|
|
|
(11,050)
|
|
|
(9,500)
|
|
Net cash used in
investing activities
|
|
(327,676)
|
|
|
(1,046,512)
|
|
|
(1,560,565)
|
|
|
(1,115,974)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of convertible notes
|
|
—
|
|
|
—
|
|
|
1,000,000
|
|
|
—
|
|
Proceeds from issuance
of senior notes
|
|
—
|
|
|
700,000
|
|
|
—
|
|
|
700,000
|
|
Debt issuance
costs
|
|
—
|
|
|
(8,070)
|
|
|
(14,662)
|
|
|
(8,070)
|
|
Repayment of
convertible notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(935,000)
|
|
Repurchases of common
stock
|
|
(245,292)
|
|
|
—
|
|
|
(245,292)
|
|
|
—
|
|
Taxes paid related to
net share settlement of equity awards
|
|
(4,243)
|
|
|
(2,899)
|
|
|
(22,587)
|
|
|
(19,594)
|
|
Payments of finance
lease obligations
|
|
(2,489)
|
|
|
(13,050)
|
|
|
(23,062)
|
|
|
(66,677)
|
|
Proceeds from exercise
of stock options
|
|
4,988
|
|
|
35
|
|
|
5,442
|
|
|
788
|
|
Proceeds from
issuances of common stock under employee stock purchase
plan
|
|
21,076
|
|
|
17,169
|
|
|
55,471
|
|
|
42,378
|
|
Net cash provided by
(used in) financing activities
|
|
(225,960)
|
|
|
693,185
|
|
|
755,310
|
|
|
(286,175)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
(223,336)
|
|
|
(76,148)
|
|
|
187,615
|
|
|
(98,785)
|
|
Foreign exchange
effect on cash, cash equivalents and restricted cash
|
|
10,849
|
|
|
6,366
|
|
|
(4,005)
|
|
|
4,576
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
2,223,763
|
|
|
1,897,448
|
|
|
1,827,666
|
|
|
1,921,875
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
2,011,276
|
|
|
$
|
1,827,666
|
|
|
$
|
2,011,276
|
|
|
$
|
1,827,666
|
|
Supplemental
disclosures of non-cash investing and financing
activities
|
|
|
|
|
|
|
|
|
Common stock issued in
connection with acquisitions
|
|
$
|
6,999
|
|
|
$
|
—
|
|
|
$
|
8,311
|
|
|
$
|
—
|
|
Changes in accrued
property and equipment purchases
|
|
$
|
(78,767)
|
|
|
$
|
(11,694)
|
|
|
$
|
24,882
|
|
|
$
|
14,985
|
|
Reconciliation of
cash, cash equivalents and restricted cash as shown in the
consolidated
statements of cash flows
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,988,429
|
|
|
$
|
1,799,082
|
|
|
$
|
1,988,429
|
|
|
$
|
1,799,082
|
|
Restricted cash
included in prepaid expenses and other current assets
|
|
2,287
|
|
|
1,862
|
|
|
2,287
|
|
|
1,862
|
|
Restricted cash
included in other assets
|
|
20,560
|
|
|
26,722
|
|
|
20,560
|
|
|
26,722
|
|
Total cash, cash
equivalents and restricted cash
|
|
$
|
2,011,276
|
|
|
$
|
1,827,666
|
|
|
$
|
2,011,276
|
|
|
$
|
1,827,666
|
|
TWITTER,
INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (In thousands, except per share
data) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Non-GAAP net
income (loss) and net income (loss) per share:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
222,116
|
|
|
$
|
118,773
|
|
|
$
|
(1,135,626)
|
|
|
$
|
1,465,659
|
|
Exclude: Provision
(benefit) for income taxes
|
|
1,903
|
|
|
39,321
|
|
|
1,084,687
|
|
|
(1,075,520)
|
|
Income (loss) before
income taxes
|
|
224,019
|
|
|
158,094
|
|
|
(50,939)
|
|
|
390,139
|
|
Stock-based
compensation expense
|
|
128,184
|
|
|
101,296
|
|
|
474,932
|
|
|
378,025
|
|
Amortization of
acquired intangible assets
|
|
5,585
|
|
|
4,034
|
|
|
23,569
|
|
|
16,543
|
|
Non-cash interest
expense related to convertible notes
|
|
27,000
|
|
|
20,047
|
|
|
101,733
|
|
|
113,298
|
|
Impairment on
investments in privately-held companies
|
|
—
|
|
|
—
|
|
|
8,842
|
|
|
(8,611)
|
|
Restructuring
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(217)
|
|
Non-GAAP income before
income taxes
|
|
384,788
|
|
|
283,471
|
|
|
558,137
|
|
|
889,177
|
|
Non-GAAP provision
(benefit) for income taxes (1)
|
|
71,762
|
|
|
87,859
|
|
|
1,246,706
|
|
|
(970,493)
|
|
Non-GAAP net income
(loss)
|
|
$
|
313,026
|
|
|
$
|
195,612
|
|
|
$
|
(688,569)
|
|
|
$
|
1,859,670
|
|
GAAP basic
shares
|
|
793,789
|
|
|
776,647
|
|
|
787,861
|
|
|
770,729
|
|
Dilutive equity awards
(2)
|
|
22,579
|
|
|
12,037
|
|
|
—
|
|
|
14,802
|
|
Non-GAAP diluted
shares (3)
|
|
816,368
|
|
|
788,684
|
|
|
787,861
|
|
|
785,531
|
|
Non-GAAP diluted net
income (loss) per share
|
|
$
|
0.38
|
|
|
$
|
0.25
|
|
|
$
|
(0.87)
|
|
|
$
|
2.37
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
222,116
|
|
|
$
|
118,773
|
|
|
$
|
(1,135,626)
|
|
|
$
|
1,465,659
|
|
Stock-based
compensation expense
|
|
128,184
|
|
|
101,296
|
|
|
474,932
|
|
|
378,025
|
|
Depreciation and
amortization expense
|
|
128,708
|
|
|
116,473
|
|
|
495,177
|
|
|
465,549
|
|
Interest and other
expense (income), net
|
|
27,905
|
|
|
(5,210)
|
|
|
77,597
|
|
|
(23,766)
|
|
Provision (benefit)
for income taxes
|
|
1,903
|
|
|
39,321
|
|
|
1,084,687
|
|
|
(1,075,520)
|
|
Restructuring
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(217)
|
|
Adjusted
EBITDA
|
|
$
|
508,816
|
|
|
$
|
370,653
|
|
|
$
|
996,767
|
|
|
$
|
1,209,730
|
|
Stock-based
compensation expense by function:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
8,687
|
|
|
$
|
6,019
|
|
|
$
|
32,020
|
|
|
$
|
22,797
|
|
Research and
development
|
|
76,406
|
|
|
59,564
|
|
|
281,092
|
|
|
209,063
|
|
Sales and
marketing
|
|
25,176
|
|
|
21,717
|
|
|
98,748
|
|
|
85,739
|
|
General and
administrative
|
|
17,915
|
|
|
13,996
|
|
|
63,072
|
|
|
60,426
|
|
Total stock-based
compensation expense
|
|
$
|
128,184
|
|
|
$
|
101,296
|
|
|
$
|
474,932
|
|
|
$
|
378,025
|
|
Amortization of
acquired intangible assets by function:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
5,585
|
|
|
$
|
4,034
|
|
|
$
|
23,569
|
|
|
$
|
15,923
|
|
Sales and
marketing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
620
|
|
Total amortization of
acquired intangible assets
|
|
$
|
5,585
|
|
|
$
|
4,034
|
|
|
$
|
23,569
|
|
|
$
|
16,543
|
|
Restructuring
charges by function:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(13)
|
|
Research and
development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73)
|
|
Sales and
marketing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87)
|
|
General and
administrative
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44)
|
|
Total restructuring
charges
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(217)
|
|
Non-GAAP costs and
expenses:
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
$
|
1,037,117
|
|
|
$
|
854,457
|
|
|
$
|
3,689,691
|
|
|
$
|
3,092,956
|
|
Less: stock-based
compensation expense
|
|
(128,184)
|
|
|
(101,296)
|
|
|
(474,932)
|
|
|
(378,025)
|
|
Less: amortization of
acquired intangible assets
|
|
(5,585)
|
|
|
(4,034)
|
|
|
(23,569)
|
|
|
(16,543)
|
|
Less: restructuring
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
217
|
|
Total non-GAAP costs
and expenses
|
|
$
|
903,348
|
|
|
$
|
749,127
|
|
|
$
|
3,191,190
|
|
|
$
|
2,698,605
|
|
TWITTER,
INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (In thousands, except per share
data) (Unaudited) (Continued)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Adjusted free cash
flow:
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
330,300
|
|
|
$
|
277,179
|
|
|
$
|
992,870
|
|
|
$
|
1,303,364
|
|
Less: purchases of
property and equipment
|
|
(295,525)
|
|
|
(151,615)
|
|
|
(873,354)
|
|
|
(540,688)
|
|
Plus: proceeds from
sales of property and equipment
|
|
3,355
|
|
|
1,868
|
|
|
9,170
|
|
|
6,158
|
|
Adjusted free cash
flow
|
|
$
|
38,130
|
|
|
$
|
127,432
|
|
|
$
|
128,686
|
|
|
$
|
768,834
|
|
Adjusted net
income (loss) and adjusted diluted net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
222,116
|
|
|
$
|
118,773
|
|
|
$
|
(1,135,626)
|
|
|
$
|
1,465,659
|
|
Exclude: benefit from
deferred tax asset (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,206,880)
|
|
Exclude: provision for
deferred tax assets valuation allowance (5)
|
|
—
|
|
|
—
|
|
|
1,101,374
|
|
|
—
|
|
Adjusted net income
(loss)
|
|
$
|
222,116
|
|
|
$
|
118,773
|
|
|
$
|
(34,252)
|
|
|
$
|
258,779
|
|
GAAP diluted
shares
|
|
816,368
|
|
|
788,684
|
|
|
787,861
|
|
|
785,531
|
|
Adjusted diluted net
income (loss) per share
|
|
$
|
0.27
|
|
|
$
|
0.15
|
|
|
$
|
(0.04)
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
(1) The
non-GAAP benefit from income taxes for the year ended December 31,
2019 includes benefits of $1.21 billion from the establishment of
deferred tax assets from intra-entity transfers of intangible
assets. The non-GAAP provision for income taxes for the year ended
December 31, 2020 includes a provision of $1.11 billion related to
the establishment of a valuation allowance against deferred tax
assets.
|
(2) Gives
effect to potential common stock instruments such as stock options,
RSUs, shares to be issued under ESPP, unvested restricted stocks
and warrants. There is no dilutive effect of the notes or the
related hedge and warrant transactions.
|
(3) GAAP diluted shares are the same
as non-GAAP diluted shares for all periods presented.
|
(4) The benefit from deferred tax
asset in the year ended December 31, 2019 is primarily related to
the establishment of deferred tax assets from intra-entity
transfers of intangible assets.
|
(5) The provision for deferred tax
assets valuation allowance in the year ended December 31, 2020 is
related to the establishment of a valuation allowance against
deferred tax assets.
|
TWITTER,
INC. RECONCILIATION OF GAAP REVENUE TO NON-GAAP CONSTANT
CURRENCY REVENUE
(In millions) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue,
advertising revenue, data licensing and other revenue,
international revenue and
international advertising revenue excluding foreign exchange effect
(1):
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,289
|
|
|
$
|
1,007
|
|
|
$
|
3,716
|
|
|
$
|
3,459
|
|
Foreign exchange
effect on 2020 revenue using 2019 rates
|
|
(6)
|
|
|
|
|
(1)
|
|
|
|
Revenue excluding
foreign exchange effect
|
|
$
|
1,283
|
|
|
|
|
$
|
3,715
|
|
|
|
Revenue
year-over-year change percent
|
|
28
|
%
|
|
|
|
7
|
%
|
|
|
Revenue excluding
foreign exchange effect year-over-year change percent
|
|
27
|
%
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenue
|
|
$
|
1,155
|
|
|
$
|
885
|
|
|
$
|
3,207
|
|
|
$
|
2,993
|
|
Foreign exchange
effect on 2020 advertising revenue using 2019 rates
|
|
(6)
|
|
|
|
|
(1)
|
|
|
|
Advertising revenue
excluding foreign exchange effect
|
|
$
|
1,149
|
|
|
|
|
$
|
3,206
|
|
|
|
Advertising revenue
year-over-year change percent
|
|
31
|
%
|
|
|
|
7
|
%
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year change
percent
|
|
30
|
%
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Data licensing and
other revenue
|
|
$
|
134
|
|
|
$
|
123
|
|
|
$
|
509
|
|
|
$
|
466
|
|
Foreign exchange
effect on 2020 data licensing and other revenue using 2019
rates
|
|
—
|
|
|
|
|
—
|
|
|
|
Data licensing and
other revenue excluding foreign exchange effect
|
|
$
|
134
|
|
|
|
|
$
|
509
|
|
|
|
Data licensing and
other revenue year-over-year change percent
|
|
9
|
%
|
|
|
|
9
|
%
|
|
|
Data licensing and
other revenue excluding foreign exchange effect year-over-year
change percent
|
|
9
|
%
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
International
revenue
|
|
$
|
556
|
|
|
$
|
416
|
|
|
$
|
1,638
|
|
|
$
|
1,515
|
|
Foreign exchange
effect on 2020 international revenue using 2019 rates
|
|
(6)
|
|
|
|
|
(1)
|
|
|
|
International revenue
excluding foreign exchange effect
|
|
$
|
550
|
|
|
|
|
$
|
1,637
|
|
|
|
International revenue
year-over-year change percent
|
|
34
|
%
|
|
|
|
8
|
%
|
|
|
International revenue
excluding foreign exchange effect year-over-year change
percent
|
|
32
|
%
|
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
International
advertising revenue
|
|
$
|
509
|
|
|
$
|
375
|
|
|
$
|
1,469
|
|
|
$
|
1,358
|
|
Foreign exchange
effect on 2020 international advertising revenue using 2019
rates
|
|
(6)
|
|
|
|
|
(1)
|
|
|
|
International
advertising revenue excluding foreign exchange effect
|
|
$
|
503
|
|
|
|
|
$
|
1,468
|
|
|
|
International
advertising revenue year-over-year change percent
|
|
35
|
%
|
|
|
|
8
|
%
|
|
|
International
advertising revenue excluding foreign exchange effect
year-over-year change percent
|
|
34
|
%
|
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) The sum of individual amounts may
not always equal total amounts indicated due to
rounding.
|
View original
content:http://www.prnewswire.com/news-releases/twitter-announces-fourth-quarter-and-fiscal-year-2020-results-301225278.html
SOURCE Twitter, Inc.