New York Stock
Created in 2006, Twitter is a global real-time
communications platform with 400 million monthly visitors to
twitter.com, more than 200 million monthly active users around the
We see a billion tweets every 2.5 days on every conceivable topic.
World leaders, major athletes, star performers, news organizations and
entertainment outlets are among the millions of active Twitter accounts
through which users can truly get the pulse of the planet.
San Francisco, USA
1355 Market St.
San Francisco, CA, 94103
Twitter Announces Fourth Quarter and Fiscal Year 2016
Reports Accelerating Year-over-Year Growth for Daily Active Usage for
Third Consecutive Quarter and Continued, Strong Double-Digit Audience
Engagement Growth on a Year-over-Year Basis for Tweet Impressions and
Time Spent on Twitter
SAN FRANCISCO, California - Twitter,
Inc. (NYSE: TWTR) today announced financial results for its fourth
quarter and fiscal year 2016.
“2016 was a transformative year as we reset and focused on why people
use Twitter: it’s the fastest
way to see what’s happening and what everyone’s talking about,” said
Jack Dorsey, Twitter’s CEO.
“We overcame the toughest challenge for any consumer service at scale
by reversing declining
audience trends and re-accelerating usage. As a result, in the fourth
quarter, daily active usage
accelerated for the third consecutive quarter, and we see this strong
growth continuing. While
revenue growth continues to lag audience growth, we are applying the
same focused approach that
drove audience growth to our revenue product portfolio, focusing on our
strengths and the real-time
nature of our service. This will take time, but we're moving fast to
Fourth Quarter 2016 Operational and Financial Highlights
The company posted fourth quarter revenue of $717 million, an increase
of 1% year-over-year.
Quarterly GAAP net loss was $167 million, or ($0.23) per diluted share,
with quarterly non-GAAP net
income of $119 million, or $0.16 per diluted share. Average monthly
active users were 319 million for
the quarter, up 4% year-over-year and compared to 317 million in the
previous quarter. Average
daily active usage grew 11% year-over-year, an acceleration from 7% in
the third quarter, 5% in the
second quarter and 3% in the first quarter of 2016. Tweet impressions
and time spent on Twitter
also remained strong with each increasing by double digits in the
fourth quarter on a year-over-year
Advertising revenue totaled $638 million, down slightly year-over-year.
Mobile advertising revenue
was 89% of total advertising revenue. Data licensing and other revenue
totaled $79 million, an
increase of 14% year-over-year. U.S. revenue totaled $440 million, a
decrease of 5% year-overyear.
International revenue totaled $277 million, an increase of 12%
year-over-year. Total advertising
engagements were up 151% year-over-year.
Fiscal Year 2016 Financial Highlights
Total revenue for 2016 reached $2.5 billion, an increase of 14%
year-over-year. Full year GAAP net
loss was $457 million, or ($0.65) per diluted share, with full year
non-GAAP net income of $406
million, or $0.57 per diluted share. Adjusted EBITDA for the full year
improved by nearly $200 million,
reaching $751 million with a 30% margin and exceeding the forecasted
range of $700 to $715
million and the company’s initial forecasted range of 25-27% for
adjusted EBITDA margin. Adjusted
EBITDA margin improved to 30% of revenue, compared to 25% for the
previous year. Adjusted free
cash flow generated for the year totaled $444 million, compared to less
than $5 million in 2015.
Twitter had $3.8 billion in cash, cash equivalents and marketable
securities at the end of 2016.
Annual stock-based compensation expense for the year, on an absolute
basis, decreased 10%
year-over-year and declined over 600 basis points year-over-year as a
percent of revenue, reaching
24% in 2016, down from 31% in 2015 and 45% in 2014.
“Twitter gives advertisers the ability to reach the most engaged
audiences in the right context at the
right time, and we’re focusing our investments on revenue products that
strengthen our unique value
proposition, especially in live and video,” said Anthony Noto,
Twitter’s COO. “We’re hearing positive
feedback from our ad partners about our continued acceleration in
audience growth and
engagement. That said, revenue growth will continue to lag audience
growth due to the sales cycle,
and could be further impacted by the escalating competition for digital
advertising spending and our
efforts to re-evaluate our revenue product feature portfolio. We will
continue to increase the value we
provide advertisers by simplifying and differentiating the portfolio
and improving the engagement
and measurement of our products. We are confident that this path will
return us to long-term