Twitter 1Q14 Earnings Call Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

US Monthly actives 255m

“Monthly active users grew to 255 million in the quarter, including re-acceleration in our largest market, the U.S., which added 3 million net new users”

Constituents care about scale and engagement

“Content creators, publishers and marketers care about 2 things: scale and engagement, and our platform increasingly delivers both of those.”

Revenue per 1000 timeline views

“Ad revenue per 1,000 timeline views reached $1.44 in Q1, up 96% year-over-year and down 3% sequentially, due to typical Q1 seasonality, which is more pronounced here in the U.S. U.S. ad revenue per 1,000 timeline views reached $3.47, up 78% year-over-year.”

Lots of live events drove strength

“While Q1 was a strong quarter for us, we believe part of it was driven by the live events that I mentioned earlier. And while there will be key events in Q2 like the World Cup, there will be fewer than in Q1”

Twitter views vs. YouTube views

“s I mentioned in my prepared remarks, we had 3.3 billion views of tweets just about the Oscars in the 48 hours after the Oscars. Now that’s a big number. If you think about that in the context of something like YouTube, where you’ve got YouTube content networks with thousands of channels, some of the biggest of which that will achieve over 3 billion views a month — I think we’d all consider YouTube a mainstream platform, and we saw that around the Oscars in just 2 days.”

Advertisers are attracted to the platform around events

“ome of the key events I talked about in Q1, things like the Super Bowl, the Oscars and the Grammys, those not only attract user attention on the platform, but they also attract advertiser attention. I think some of these other events like the Ukraine or the plane crash of the Malaysian Airlines, those, again, attract meaningful amounts of conversation on the platform and usage from our users, but they’re not necessarily, I think, that would attract the advertisers to the platform to advertise specifically around those events.”

Seasonal decline driven by retail

“We generally saw a strong quarter across all of our verticals. I think if I had to point out one that showed some weakness, it would be retail, which is very much as expected as we moved out of the Q4 holiday season into Q1”

Ad load still pretty low

“as it relates to ad load, as I said in the prepared remarks, our ad load remains very low. And so we’ve had the luxury of being able to improve ad revenue per timeline view and monetization without impacting our ad load. Again, the focus for us is user experience. As we look at the $1 per user per quarter, we really think about it more from an ad revenue per timeline view perspective, and we feel like there’s meaningful runway there. ”

Don’t share number of advertisers

“as far as unique number of advertisers, that’s not a statistic we share.”

Lot of advertisers using twitter data to target marketing

“companies across all sorts of different industries increasingly leveraging Twitter data for business intelligence, customer relationship management, sentiment analysis. And then to marketers specifically, leveraging Twitter data to understand how to better target and delivered advertisements into our platform. So all of that helped us start to feel like that was something we needed to really bring in-house, because it’s strategic to the future of the way we think about our data in service to those kinds of companies.”

Stats around events

“the Super Bowl, there’s 25 million tweets around the Super Bowl in that event. But we have over 1 million tweets about sports on the platform every day. If you look at the Grammys, we have 15 million tweets around the Grammys. There’s approximately 3 million tweets about music on the platform every day.”

User experience driving ad load

“Ad load is low, very low, as I’ve stated in my remarks. We are first and foremost focused on a good user experience. We will factor in advertiser demand though. As I mentioned in the Q4 call, ad load on a [ph] very slightly driven by advertiser demand. And really the balance in the trade-off we have there is the quality of the advertising. And if we think we can serve high-quality, relevant ads, that’s something we’ll consider as we’re looking at ad load. But truly, it’s the user experience that’s the first factor in the guiding factor for us.”