Twitter 3Q16 Earnings Call Notes

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Twitter (TWTR) Q3 2016 Results
Jack Dorsey

Not going to comment on market speculation re: sale

” Before I talk about our results and strategy, I want to address the recent market speculation quickly by saying that our board is committed to maximizing long-term shareholder value. I don’t plan to comment any further on this topic.”

We’re focused on building the most useful open and comprehensive news network

“we’re focused on building the most useful open and comprehensive news network on the planet and this is the faster way to see what’s happening and our product is already revolutionary and we’re focused on improving it every single day. We’ve been making hundreds of small changes as quickly as we can that will continue to compound and more usage and the people are showing us that these changes are working. We’re seeing more people wanting to use Twitter and to use it more often. So we’re focused on the most the areas of the product that people spend the majority of their time in which is a home timeline and notifications, making sure that the home timeline becomes more and more relevant. You open up Twitter and you see exactly what’s happening.”

Anthony Noto

Driving for GAAP profitability in 2017

“First, I think it’s really important for everyone to understand, we are focused on driving towards GAAP profitability in 2017. We are cutting costs that are non-core to our key objectives of driving audience engagement and monetization growth. It’s also, I think, critical to understand that we’re fully funding our most important initiatives that are driving those metrics and that are doing that today. As it relates to the broader objective, once a company gets to our scale and growth, it’s appropriate to drive long-term margins and GAAP profitability. We’re very proud of the fact that we’ve already generated over $330 million of free cash flow in 2016, and that’s defined as operating cash flow less CapEx.”

Adam Bain

Marketers want to see audience growth

“marketers are looking for audience growth and audience engagements sustained over time. We’ve now had two quarters of that kind of growth and it’s accelerating. That should help us greatly in our conversations that we’re having with marketers.”