SAN FRANCISCO, April 29, 2021 /PRNewswire/ -- Twitter, Inc.
(NYSE: TWTR) today announced financial results for its first
quarter 2021.
"People turn to Twitter to see and talk about what's happening,
and we are helping them find their interests more quickly while
making it easier to follow and participate in conversations," said
Jack Dorsey, Twitter's CEO. "Average
monetizable DAU (mDAU) reached 199 million, up 20% year over year
and up 7 million sequentially, driven by ongoing product
improvements and global conversation around current events."
"Q1 was a solid start to 2021, with total revenue of
$1.04 billion up 28% year-over-year,
reflecting accelerating year-over-year growth in MAP revenue and
brand advertising that improved throughout the quarter," said
Ned Segal, Twitter's CFO.
"Advertisers continue to benefit from updated ad formats, improved
measurement, and new brand safety controls, contributing to 32%
year-over-year growth in ad revenue in Q1."
First Quarter 2021 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 $1.04 billion,
an increase of 28% year-over-year.
-
- Advertising revenue totaled $899
million, an increase of 32%, or 30% on a constant currency
basis.
-
- Total ad engagements increased 11% year-over-year.
- Cost per engagement (CPE) increased 19% year-over-year.
- Data licensing and other revenue totaled $137 million, an increase of 9%
year-over-year.
- US revenue totaled $556 million,
an increase of 19% year-over-year.
- International revenue totaled $480
million, an increase of 41%, or 38% on a constant currency
basis.
- Q1 costs and expenses totaled $984
million, an increase of 21% year-over-year. This resulted in
operating income of $52 million and
5% operating margin, compared to an operating loss of $7 million or -1% in the same period of the
previous year.
- Stock-based compensation (SBC) expense grew 13% year over year
to $111 million and was approximately
11% of total revenue.
- Q1 net income was $68 million,
representing a net margin of 7% and diluted EPS of $0.08. This compares to a net loss of
$8 million, a net margin of -1% and
diluted EPS of -$0.01 in the same
period of the previous year.
- Net cash provided by operating activities in the quarter was
$390 million, compared to
$247 million in the same period last
year. Capital expenditures totaled $179
million, compared to $121
million in the same period last year, driven by
infrastructure investments in data center build-outs to support
audience growth and product innovation.
- Average monetizable daily active users (mDAU) were 199 million
for Q1, compared to 166 million in the same period of the previous
year and compared to 192 million in the previous quarter.
-
- Average US mDAU were 38 million for Q1, compared to 33 million
in the same period of the previous year and compared to 37 million
in the previous quarter.
- Average international mDAU were 162 million for Q1, compared to
133 million in the same period of the previous year and compared to
155 million in the previous quarter.
Outlook
We are attracting more great people to Twitter than ever before
and investing in our highest priorities to deliver on our long-term
goals across consumer product, revenue product, and platform. As a
result, we now expect headcount growth to more closely mirror
expense growth in 2021, with headcount -- and total costs and
expenses -- growing 25% or more on a year-over-year basis in 2021,
ramping in absolute dollars over the course of the year.
As a reminder, SBC expense is closely tied to headcount, the
timing of grants, and vesting, and we typically see a significant
sequential increase in Q2 driven by the timing of refresh grants in
the early part of the year. As such, we expect to report a
sequential increase in SBC expense of $60
million or more in Q2. Expected full-year SBC expense has
also increased to approximately $600
million, from our previous range of $525 million to $575
million, reflecting increased hiring and retention
grants.
We continue to expect total revenue to grow faster than expenses
in 2021, assuming the global pandemic continues to improve and that
we see modest impact from the rollout of changes associated with
iOS 14.5. How much faster will depend on various factors, including
our execution on our direct response roadmap and macroeconomic
factors.
For Q2'21:
- Total revenue is expected to be between $980 million and $1.08
billion.
- GAAP operating loss is expected to be between $170 million and $120
million.
For FY21:
- Stock-based compensation expense is expected to be
approximately $600 million.
- Capital expenditures are expected to be between $900 million and $950
million.
Note that our outlook for Q2 and the full year 2021 reflects
foreign exchange rates as of April
2021.
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.
Appendix
First Quarter 2021 Webcast and Conference Call
Details
Twitter will host a conference call today,
Thursday, April 29, 2021, at
3pm Pacific Time (6pm Eastern Time) to discuss financial results
for the first quarter of 2021. The company will be following the
conversation about the earnings announcement on Twitter. To have
your questions considered during the Q&A, Tweet your question
to @TwitterIR using $TWTR. To listen to a live audio webcast,
please visit the company's Investor Relations page at
investor.twitterinc.com. Twitter has used, and intends to continue
to use, its Investor Relations website and the Twitter accounts of
@jack, @nedsegal, @Twitter, and @TwitterIR as means of disclosing
material nonpublic information and for complying with its
disclosure obligations under Regulation FD.
Second Quarter Earnings Release Details
Twitter
expects to release financial results for the second quarter of 2021
on July 22, 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. (NYSE:
TWTR)
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
first quarter of 2021 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
and guidance, the impact of the COVID-19 pandemic and the timing of
recovery from the pandemic on Twitter's operations and personnel,
on commercial activity and advertiser demand across Twitter's
platform, and on Twitter's operating results, as well as on
worldwide and regional economies; the impact of the rollout of iOS
14.5 on Twitter's business and operating results; Twitter's
expectations and strategies regarding the growth of its revenue,
including the drivers of such growth, audience, and engagement
(including, in each case, any potential impact of COVID-19),
advertiser base and spending, and allocation of resources; and
Twitter's expectations regarding future capital expenditures,
headcount growth and other expenses, including its SBC expenses.
Twitter's expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties, including changes in our plans or
assumptions, 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 or 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, 2020, filed with the Securities and Exchange Commission.
Additional information will also be set forth in Twitter's
Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2021. 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 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. In order to present revenues on a constant currency
basis for the fiscal quarter ended March 31,
2021, 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.
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)
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,248,702
|
|
|
$
|
1,988,429
|
|
Short-term
investments
|
|
4,557,585
|
|
|
5,483,873
|
|
Accounts receivable,
net
|
|
850,075
|
|
|
1,041,743
|
|
Prepaid expenses and
other current assets
|
|
207,380
|
|
|
123,063
|
|
Total current
assets
|
|
9,863,742
|
|
|
8,637,108
|
|
Property and
equipment, net
|
|
1,620,001
|
|
|
1,493,794
|
|
Operating lease
right-of-use assets
|
|
1,001,109
|
|
|
930,139
|
|
Intangible assets,
net
|
|
62,718
|
|
|
58,338
|
|
Goodwill
|
|
1,316,461
|
|
|
1,312,346
|
|
Deferred tax assets,
net
|
|
933,245
|
|
|
796,326
|
|
Other
assets
|
|
186,799
|
|
|
151,039
|
|
Total
assets
|
|
$
|
14,984,075
|
|
|
$
|
13,379,090
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
219,899
|
|
|
$
|
194,281
|
|
Accrued and other
current liabilities
|
|
684,697
|
|
|
663,532
|
|
Convertible notes,
short-term
|
|
953,046
|
|
|
917,866
|
|
Operating lease
liabilities, short-term
|
|
179,051
|
|
|
177,147
|
|
Total current
liabilities
|
|
2,036,693
|
|
|
1,952,826
|
|
Convertible notes,
long-term
|
|
3,552,784
|
|
|
1,875,878
|
|
Senior notes,
long-term
|
|
693,241
|
|
|
692,994
|
|
Operating lease
liabilities, long-term
|
|
899,757
|
|
|
819,748
|
|
Deferred and other
long-term tax liabilities, net
|
|
32,033
|
|
|
31,463
|
|
Other long-term
liabilities
|
|
32,917
|
|
|
36,099
|
|
Total
liabilities
|
|
7,247,425
|
|
|
5,409,008
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
4
|
|
|
4
|
|
Additional paid-in
capital
|
|
8,551,763
|
|
|
9,167,138
|
|
Treasury
stock
|
|
(5,297)
|
|
|
(5,297)
|
|
Accumulated other
comprehensive loss
|
|
(96,932)
|
|
|
(66,094)
|
|
Accumulated
deficit
|
|
(712,888)
|
|
|
(1,125,669)
|
|
Total stockholders'
equity
|
|
7,736,650
|
|
|
7,970,082
|
|
Total liabilities and
stockholders' equity
|
|
$
|
14,984,075
|
|
|
$
|
13,379,090
|
|
TWITTER,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
(Unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
Revenue
|
|
$
|
1,036,018
|
|
|
$
|
807,637
|
|
Costs and
expenses
|
|
|
|
|
Cost of
revenue
|
|
381,008
|
|
|
284,037
|
|
Research and
development
|
|
250,709
|
|
|
200,388
|
|
Sales and
marketing
|
|
234,592
|
|
|
221,287
|
|
General and
administrative
|
|
117,527
|
|
|
109,368
|
|
Total costs and
expenses
|
|
983,836
|
|
|
815,080
|
|
Income (loss) from
operations
|
|
52,182
|
|
|
(7,443)
|
|
Interest
expense
|
|
(13,185)
|
|
|
(33,270)
|
|
Interest
income
|
|
11,001
|
|
|
32,897
|
|
Other income
(expense), net
|
|
6
|
|
|
(7,719)
|
|
Income (loss) before
income taxes
|
|
50,004
|
|
|
(15,535)
|
|
Benefit from income
taxes
|
|
(18,001)
|
|
|
(7,139)
|
|
Net income
(loss)
|
|
$
|
68,005
|
|
|
$
|
(8,396)
|
|
Net income (loss) per
share:
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
(0.01)
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
(0.01)
|
|
Weighted-average
shares used to compute net income (loss) per share:
|
|
|
|
|
Basic
|
|
795,633
|
|
|
780,688
|
|
Diluted
|
|
872,187
|
|
|
780,688
|
|
TWITTER,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
68,005
|
|
|
$
|
(8,396)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
131,052
|
|
|
120,649
|
|
Stock-based
compensation expense
|
110,873
|
|
|
97,903
|
|
Amortization of
discount on convertible notes
|
—
|
|
|
21,504
|
|
Bad debt
expense
|
(1,405)
|
|
|
14,067
|
|
Deferred income
taxes
|
(23,873)
|
|
|
(7,024)
|
|
Impairment of
investments in privately-held companies
|
—
|
|
|
8,003
|
|
Other
adjustments
|
4,739
|
|
|
(8,425)
|
|
Changes in assets and
liabilities, net of assets acquired and liabilities assumed from
acquisitions:
|
|
|
|
Accounts
receivable
|
189,297
|
|
|
168,932
|
|
Prepaid expenses and
other assets
|
(80,989)
|
|
|
(6,252)
|
|
Operating lease
right-of-use assets
|
49,246
|
|
|
38,749
|
|
Accounts
payable
|
(24,808)
|
|
|
(14,480)
|
|
Accrued and other
liabilities
|
6,382
|
|
|
(139,168)
|
|
Operating lease
liabilities
|
(38,335)
|
|
|
(39,295)
|
|
Net cash provided by
operating activities
|
390,184
|
|
|
246,767
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(181,181)
|
|
|
(122,667)
|
|
Proceeds from sales of
property and equipment
|
1,835
|
|
|
1,623
|
|
Purchases of
marketable securities
|
(1,370,830)
|
|
|
(1,233,530)
|
|
Proceeds from
maturities of marketable securities
|
1,221,461
|
|
|
1,125,634
|
|
Proceeds from sales of
marketable securities
|
1,067,603
|
|
|
722,253
|
|
Purchases of
investments in privately-held companies
|
(30,867)
|
|
|
(1,339)
|
|
Investments in Finance
Justice Fund
|
(10,200)
|
|
|
—
|
|
Business combinations,
net of cash acquired
|
(8,378)
|
|
|
(14,780)
|
|
Other investing
activities
|
(9,085)
|
|
|
(11,050)
|
|
Net cash provided by
investing activities
|
680,358
|
|
|
466,144
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from issuance
of convertible notes
|
1,437,500
|
|
|
1,000,000
|
|
Purchases of
convertible note hedges
|
(213,469)
|
|
|
—
|
|
Proceeds from issuance
of warrants concurrent with note hedges
|
161,144
|
|
|
—
|
|
Debt issuance
costs
|
(16,769)
|
|
|
(14,662)
|
|
Repurchases of common
stock
|
(161,552)
|
|
|
—
|
|
Taxes paid related to
net share settlement of equity awards
|
(10,569)
|
|
|
(11,693)
|
|
Payments of finance
lease obligations
|
(565)
|
|
|
(9,966)
|
|
Proceeds from exercise
of stock options
|
1,958
|
|
|
305
|
|
Net cash provided by
financing activities
|
1,197,678
|
|
|
963,984
|
|
Net increase in cash,
cash equivalents and restricted cash
|
2,268,220
|
|
|
1,676,895
|
|
Foreign exchange
effect on cash, cash equivalents and restricted cash
|
(8,018)
|
|
|
(11,948)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,011,276
|
|
|
1,827,666
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
4,271,478
|
|
|
$
|
3,492,613
|
|
Supplemental
disclosures of non-cash investing and financing
activities
|
|
|
|
Common stock issued in
connection with acquisitions
|
$
|
—
|
|
|
$
|
1,312
|
|
Changes in accrued
property and equipment purchases
|
$
|
57,030
|
|
|
$
|
38,512
|
|
Reconciliation of
cash, cash equivalents and restricted cash as shown in the
consolidated statements of cash
flows
|
|
|
|
Cash and cash
equivalents
|
$
|
4,248,702
|
|
|
$
|
3,463,349
|
|
Restricted cash
included in prepaid expenses and other current assets
|
3,516
|
|
|
1,846
|
|
Restricted cash
included in other assets
|
19,260
|
|
|
27,418
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
4,271,478
|
|
|
$
|
3,492,613
|
|
TWITTER,
INC.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands,
except per share data)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Non-GAAP net
income and net income per share:
|
|
|
|
|
Net income
(loss)
|
|
$
|
68,005
|
|
|
$
|
(8,396)
|
|
Exclude: Benefit from
income taxes
|
|
(18,001)
|
|
|
(7,139)
|
|
Income (loss) before
income taxes
|
|
50,004
|
|
|
(15,535)
|
|
Stock-based
compensation expense
|
|
110,873
|
|
|
97,903
|
|
Amortization of
acquired intangible assets
|
|
8,107
|
|
|
5,041
|
|
Non-cash interest
expense related to convertible notes (1)
|
|
—
|
|
|
21,504
|
|
Impairment on
investments in privately-held companies
|
|
—
|
|
|
8,003
|
|
Non-GAAP income before
income taxes
|
|
168,984
|
|
|
116,916
|
|
Non-GAAP provision for
income taxes
|
|
27,773
|
|
|
29,508
|
|
Non-GAAP net
income
|
|
$
|
141,211
|
|
|
$
|
87,408
|
|
GAAP basic
shares
|
|
795,633
|
|
|
780,688
|
|
Dilutive equity awards
(2)
|
|
76,554
|
|
|
9,987
|
|
Non-GAAP diluted
shares (3)
|
|
872,187
|
|
|
790,675
|
|
Non-GAAP diluted net
income per share
|
|
$
|
0.16
|
|
|
$
|
0.11
|
|
Adjusted
EBITDA:
|
|
|
|
|
Net income
(loss)
|
|
$
|
68,005
|
|
|
$
|
(8,396)
|
|
Stock-based
compensation expense
|
|
110,873
|
|
|
97,903
|
|
Depreciation and
amortization expense
|
|
131,052
|
|
|
120,649
|
|
Interest and other
expense (income), net
|
|
2,178
|
|
|
8,092
|
|
Benefit from income
taxes
|
|
(18,001)
|
|
|
(7,139)
|
|
Adjusted
EBITDA
|
|
$
|
294,107
|
|
|
$
|
211,109
|
|
Stock-based
compensation expense by function:
|
|
|
|
|
Cost of
revenue
|
|
$
|
8,732
|
|
|
$
|
5,756
|
|
Research and
development
|
|
65,156
|
|
|
60,587
|
|
Sales and
marketing
|
|
21,171
|
|
|
18,839
|
|
General and
administrative
|
|
15,814
|
|
|
12,721
|
|
Total stock-based
compensation expense
|
|
$
|
110,873
|
|
|
$
|
97,903
|
|
Amortization of
acquired intangible assets by function:
|
|
|
|
|
Cost of
revenue
|
|
$
|
6,499
|
|
|
$
|
5,041
|
|
Research and
development
|
|
1,508
|
|
|
—
|
|
Sales and
marketing
|
|
100
|
|
|
—
|
|
Total amortization of
acquired intangible assets
|
|
$
|
8,107
|
|
|
$
|
5,041
|
|
Non-GAAP costs and
expenses:
|
|
|
|
|
Total costs and
expenses
|
|
$
|
983,836
|
|
|
$
|
815,080
|
|
Less: stock-based
compensation expense
|
|
(110,873)
|
|
|
(97,903)
|
|
Less: amortization of
acquired intangible assets
|
|
(8,107)
|
|
|
(5,041)
|
|
Total non-GAAP costs
and expenses
|
|
$
|
864,856
|
|
|
$
|
712,136
|
|
Adjusted free cash
flow:
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
390,184
|
|
|
$
|
246,767
|
|
Less: purchases of
property and equipment
|
|
(181,181)
|
|
|
(122,667)
|
|
Plus: proceeds from
sales of property and equipment
|
|
1,835
|
|
|
1,623
|
|
Adjusted free cash
flow
|
|
$
|
210,838
|
|
|
$
|
125,723
|
|
|
|
|
|
|
(1) The Company adopted the new
accounting standard update to simplify the accounting for
convertible debt on January 1, 2021 using the modified
retrospective method. The adoption eliminates the non-cash interest
expense related to the conversion features of the convertible notes
beginning in the first quarter of 2021.
|
|
(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 in the three months ended
March 31, 2020. Dilutive equity awards in the three months ended
March 31, 2021 reflect the dilutive effect of the convertible notes
upon adoption of the new accounting standard update to simplify the
accounting for convertible debt as of January 1, 2021.
|
|
(3) GAAP dilutive shares are the same
as non-GAAP dilutive shares for the three months ended March 31,
2021.
|
TWITTER,
INC.
RECONCILIATION OF
GAAP REVENUE TO NON-GAAP CONSTANT CURRENCY REVENUE
(In
millions)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Revenue,
advertising revenue, data licensing and other revenue,
international revenue and international advertising
revenue excluding foreign exchange effect
(1):
|
|
|
|
|
Revenue
|
|
$
|
1,036
|
|
|
$
|
808
|
|
Foreign exchange
effect on 2021 revenue using 2020 rates
|
|
(11)
|
|
|
|
Revenue excluding
foreign exchange effect
|
|
$
|
1,025
|
|
|
|
Revenue
year-over-year change percent
|
|
28
|
%
|
|
|
Revenue excluding
foreign exchange effect year-over-year change percent
|
|
27
|
%
|
|
|
|
|
|
|
|
Advertising
revenue
|
|
$
|
899
|
|
|
$
|
682
|
|
Foreign exchange
effect on 2021 advertising revenue using 2020 rates
|
|
(11)
|
|
|
|
Advertising revenue
excluding foreign exchange effect
|
|
$
|
888
|
|
|
|
Advertising revenue
year-over-year change percent
|
|
32
|
%
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year change
percent
|
|
30
|
%
|
|
|
|
|
|
|
|
Data licensing and
other revenue
|
|
$
|
137
|
|
|
$
|
125
|
|
Foreign exchange
effect on 2021 data licensing and other revenue using 2020
rates
|
|
—
|
|
|
|
Data licensing and
other revenue excluding foreign exchange effect
|
|
$
|
137
|
|
|
|
Data licensing and
other revenue year-over-year change percent
|
|
9
|
%
|
|
|
Data licensing and
other revenue excluding foreign exchange effect year-over-year
change percent
|
|
9
|
%
|
|
|
|
|
|
|
|
International
revenue
|
|
$
|
480
|
|
|
$
|
339
|
|
Foreign exchange
effect on 2021 international revenue using 2020 rates
|
|
(11)
|
|
|
|
International revenue
excluding foreign exchange effect
|
|
$
|
469
|
|
|
|
International revenue
year-over-year change percent
|
|
41
|
%
|
|
|
International revenue
excluding foreign exchange effect year-over-year change
percent
|
|
38
|
%
|
|
|
|
|
|
|
|
International
advertising revenue
|
|
$
|
435
|
|
|
$
|
301
|
|
Foreign exchange
effect on 2021 international advertising revenue using 2020
rates
|
|
(11)
|
|
|
|
International
advertising revenue excluding foreign exchange effect
|
|
$
|
424
|
|
|
|
International
advertising revenue year-over-year change percent
|
|
45
|
%
|
|
|
International
advertising revenue excluding foreign exchange effect
year-over-year change percent
|
|
41
|
%
|
|
|
|
|
|
|
|
(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-first-quarter-2021-results-301280671.html
SOURCE Twitter, Inc.