Twitter (TWTR) Q1 2017

posted in: Earnings Call, Notes | 0

Anthony Noto – Chief Operating Officer

Politics driving up user growth

“Audience growth in Q1 was driven primarily by organic growth, reflecting some seasonal strength followed by product improvements and marketing. Contributions to growth from product improvements importantly have been growing steadily for the last four quarters…There also is some evidence that we benefited from our new and resurrected users following more news and political accounts in Q1, particularly in the U.S. That’s a really positive thing..”

They expect Improved ROI to drive up advertising revenues in the near term

“the first thing I think that’s really important to understand and something that we’ll continue to benefit and talk about over the next several quarters is just the four consecutive quarters of DAU (Daily Active Users) growth with an acceleration again this quarter to 14%. That’s on a year-over-year basis. …The current revenue trends that we’re reporting reflect budget decisions based on trends in audience and pricing of 6 months to 12 months ago when we were not seeing the significant acceleration in user growth or the more than 60% year-over-year decline in cost per engagement. The good news is we’ve been out aggressively telling the story of that improved ROI. Early feedback has been positive. In fact, we signed 32 additional upfront deals since our last earnings call. While these represent a small portion of our total expected revenue, we’re seeing momentum in the number of upfront commitments signed. That said, advertisers have long allocation processes that take 6 months to 12 months to turn around, so we have a lot of work left to do.”

Live streaming to younger audiences

“…we had 800 hours of live streaming programming in Q1, up from 600 hours in Q2, and again that’s across sports, e-sports, news, and entertainment…50% of our audience in live streaming is less than 25 years old and over 50% is international.”

Jack Dorsey – CEO

What people use Twitter for.

“..we’ve seen for ten years that people go to Twitter first to see what’s going on and to see what’s happening and what people think about what’s going on and what’s happening. We want to get to a place where we’re the first place they hear of something. Twitter is the first place they hear of something. And that means that we need to get really good at connecting all the dots and all the data that we have to make sure that we’re building something that’s really relevant so that when we notify someone, it’s something that is deeply impactful to them, is relevant, and is important. And they go into an experience where they can dig even deeper and see what’s really happening.”