Twitter 4Q16 Earnings Call Notes

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Jack Dorsey

Reversed and reaccelerated usage

“We started 2016 by resetting and focusing on why people use Twitter. It’s the fastest way to see what’s happening, and what everyone is talking about. We reset and refocused on our strengths, and we achieved one of the hardest things to do for a consumer services scale. We reversed and reaccelerated our usage. We’re thrilled to report that daily active usage accelerated for the third quarter in a row, and we see that strong growth continuing.”

Impact continues to grow

“The whole world is watching Twitter. While we may not be meeting everyone’s growth expectations, there’s one thing that continues to grow and outpace our peers: Twitter’s influence and impact. You don’t go a day without hearing about Twitter, how it is used as the fastest way to send a message to the world in an instant, how it carries some of the most important commentary and conversations, how it mobilize people into action. That’s powerful, it’s valuable, it’s fundamental, and it’s the reason we’re all here fighting so hard for the service and company we love. It’s been hard, it will continue to be hard, and it’s all worth it. Twitter changed the way the world communicates. And we’ll do it again.”

President’s use of twitter shows the power of the platform

“Sure. Thank you. Mark. On your first question what I would say is that the President’s use of Twitter has broadened the awareness of how the platform can be used and it shows the power of Twitter. When he tweets, it sparks conversation and discussion. So at a macro level discussion on the platform really helps us be the best at showing what’s happening in the world and more discussions strengthens our key differentiators in comprehensive and fast.”

Hard for one person to drive impressions growth

“As it relates to impressions growth, which is another area we look at, as I mentioned earlier, the magnitude of the impressions of the platform is so large, it’d be very hard for an event or a single person to drive sustained growth in impressions growth. All of that said, having the world’s leaders on our platform, talking about global issues, people being passionately expressing their points of view, that’s all positive for Twitter, and that’s what we’re focused on. ”

We can break news faster than any other service

” as I look into 2017 and we look at what we can do, I just think the superpower we really provide the world is we can break news and get information to people faster than any other service in the world. And in order to do that, people have to do just a ton of work right now to dig through everything that may not matter to them to find something that really does. And that’s why I am excited about really making sure that we apply artificial intelligence and machine learning in the right ways and that we really meet that superpower of being that little bird that told you something that you couldn’t find anywhere else. And that when you get into the application and when you get into the service, that it is as easy as looking out the window to see what’s going on. And we have a lot of work to do.”

Anthony Noto

Weak revenue trends are lagging previous engagement declines

“We do believe that is a matter of when, not if. The budget allocations that are reflected in our guidance they really reflect our audience and pricing trends 6 to 12 months ago when we had no growth in audience or even a decline in audience, and the headlines really questioned our abilities to sustain our audience growth. Those long lead times caused the outlook to reflect 6 to 12 months ago, and the benefit that we’re seeing today to be on the comps 6 to 12 months from now. So what are we doing to (18:50) the audience growth and the engagement growth, we’re sitting down with branded advertisers and we’re sharing with them the positive trends. We’re taking them through the increased inventory, the higher scale, the greater growth, all of which we think can lead to better ROI and helping them run through their models, so that we can get better allocations over the next 6 to 12 months.”