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Press release content from PR Newswire. The AP news staff was not involved in its creation.

Twitter Announces Fourth Quarter and Fiscal Year 2019 Results

February 6, 2020 GMT

SAN FRANCISCO, Feb. 6, 2020 /PRNewswire/ -- Twitter, Inc. (NYSE: TWTR) today announced financial results for its fourth quarter and fiscal year 2019.

“2019 was a great year for Twitter. Our work to increase relevance and ease of use delivered 21% mDAU growth in Q4, with more than half of the 26 million mDAU added in 2019 directly driven by product improvements,” said Jack Dorsey, Twitter’s CEO. “Entering 2020, we are building on our momentum -- learning faster, prioritizing better, shipping more and hiring remarkable talent. All of which put us in a stronger position as we address the challenges and opportunities ahead.”

“We reached a new milestone in Q4 with quarterly revenue in excess of $1 billion, reflecting steady progress on revenue product and solid performance across most major geographies, with particular strength in US advertising,” said Ned Segal, Twitter’s CFO. “We continue to see tremendous opportunity to get the whole world to use Twitter and provide a more personalized experience across both organic and promoted content, delivering increasing value for both consumers and advertisers.”

Fiscal Year 2019 Operational and Financial Highlights

Fourth Quarter 2019 Operational and Financial Highlights

Outlook

As we enter 2020, we are focused on four objectives to drive our work. These are similar to previous years, and our success will best be measured externally by our ability to grow our audience and deliver financial results in line with our guidance. Our company objectives are:

To support these objectives, we expect to grow headcount by 20% or more in 2020, especially in engineering, product, design, and research. Given investment decisions made in previous years and anticipated 2020 headcount growth, we expect total costs and expenses (which include cost of revenue and all operating expenses) to grow approximately 20% in 2020, ramping in absolute dollars over the course of the year.

Our investments also include building out a new data center in 2020 to add capacity to support audience and revenue growth. While the timing of these investments will be variable and spread out over multiple quarters, we expect capital expenditures to be weighted toward the second half of the year.

For Q1, we expect:

For FY 2020, we expect:

Note that our outlook for Q1 and the full year 2020 reflects foreign exchange rates as of January 2020. For more information regarding the non-GAAP financial measures discussed in this letter, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Appendix

Fourth Quarter and Full Year 2019 Webcast and Conference Call Details
Twitter will host a conference call today, Thursday, February 6, 2020, at 5am Pacific Time (8am Eastern Time) to discuss financial results for the fourth quarter and full fiscal year 2019. The company will be following the conversation about the earnings announcement on Twitter. To have your questions considered during the Q&A, Tweet your question to @TwitterIR using $TWTR. To listen to a live audio webcast, please visit the company’s Investor Relations page at investor.twitterinc.com. Twitter has used, and intends to continue to use, its Investor Relations website and the Twitter accounts of @jack, @nedsegal, @Twitter, and @TwitterIR as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.

First Quarter Earnings Release Details
Twitter expects to release financial results for the first quarter of 2020 on April 30, 2020, before the market opens at approximately 4am Pacific Time (7am Eastern Time). On the same day, Twitter will host a conference call to discuss those financial results at 5am Pacific Time (8am Eastern Time).

About Twitter, Inc. (NYSE: TWTR)
Twitter is what’s happening in the world and what people are talking about right now. From breaking news and entertainment to sports, politics, and everyday interests, see every side of the story. Join the open conversation. Watch live-streaming events. Available in more than 40 languages around the world, the service can be accessed via twitter.com, an array of mobile devices, and SMS. For more information, please visit about.twitter.com, follow @Twitter, and download both the Twitter and Periscope apps at twitter.com/download and periscope.tv.

A Note About Metrics
Twitter defines monetizable daily active usage or users([1]) (mDAU) as people, organizations, or other accounts who logged in or were otherwise authenticated and accessed Twitter on any given day through twitter.com or Twitter applications that are able to show ads. Average mDAU for a period represents the number of mDAU on each day of such period divided by the number of days for such period. Changes in mDAU are a measure of changes in the size of our daily logged in or otherwise authenticated active total accounts. To calculate the year-over-year change in mDAU, we subtract the average mDAU for the three months ended in the previous year from the average mDAU for the same three months ended in the current year and divide the result by the average mDAU for the three months ended in the previous year. Additionally, our calculation of mDAU is not based on any standardized industry methodology and is not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies.

The numbers of mDAU presented in our earnings materials are based on internal company data. While these numbers are based on what we believe to be reasonable estimates for the applicable period of measurement, there are inherent challenges in measuring usage and engagement across our large number of total accounts around the world. Furthermore, our metrics may be impacted by our information quality efforts, which are our overall efforts to reduce malicious activity on the service, inclusive of spam, malicious automation, and fake accounts. For example, there are a number of false or spam accounts in existence on our platform. We have performed an internal review of a sample of accounts and estimate that the average of false or spam accounts during the fourth quarter of 2019 represented fewer than 5% of our mDAU during the quarter. The false or spam accounts for a period represents the average of false or spam accounts in the samples during each monthly analysis period during the quarter. In making this determination, we applied significant judgment, so our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated. We are continually seeking to improve our ability to estimate the total number of spam accounts and eliminate them from the calculation of our mDAU, and have made improvements in our spam detection capabilities that have resulted in the suspension of a large number of spam, malicious automation, and fake accounts. We intend to continue to make such improvements. After we determine an account is spam, malicious automation, or fake, we stop counting it in our mDAU, or other related metrics. We also treat multiple accounts held by a single person or organization as multiple mDAU because we permit people and organizations to have more than one account. Additionally, some accounts used by organizations are used by many people within the organization. As such, the calculations of our mDAU may not accurately reflect the actual number of people or organizations using our platform.

(1) Please note that in Q4'19, in an effort to demonstrate more empathy for the people who use Twitter, we largely discontinued the use of the word "user" in our external communications, including in our earnings reports and SEC filings. The underlying definitions for our metrics did not change.

In addition, geographic location data collected for purposes of reporting the geographic location of our mDAU is based on the IP address or phone number associated with the account when an account is initially registered on Twitter. The IP address or phone number may not always accurately reflect a person’s actual location at the time they engaged with our platform. For example, someone accessing Twitter from the location of the proxy server that the person connects to rather than from the person’s actual location.

We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy. Our measures of mDAU growth and engagement may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Twitter’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going to,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern Twitter’s expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding Twitter’s future financial and operating performance, including its outlook, guidance and strategies to improve financial and operating performance; Twitter’s opportunity; Twitter’s anticipated strategies, and product and business plans, including its priorities, product initiatives, Twitter’s objectives going into 2020 and its strategies and ability to achieve these objectives, and Twitter’s expectations regarding future capital expenditures and other expenses, including headcount growth, and the timing of these expenditures. Twitter’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: Twitter’s user base and engagement do not grow or decline; Twitter’s strategies, priorities, or plans take longer to execute than anticipated; Twitter’s new products and product features do not meet expectations and fail to drive mDAU growth; advertisers reduce or discontinue their spending on Twitter; data partners reduce or discontinue their purchases of data licenses from Twitter; and Twitter experiences expenses that exceed its expectations. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Twitter’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019, each filed with the Securities and Exchange Commission. Additional information will also be set forth in Twitter’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The forward-looking statements in this press release are based on information available to Twitter as of the date hereof, and Twitter disclaims any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Measures
To supplement Twitter’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Twitter considers certain financial measures that are not prepared in accordance with GAAP, including revenues excluding foreign exchange effect, which we refer to as on a constant currency basis, non-GAAP income before income taxes, non-GAAP provision (benefit) for income taxes, non-GAAP net income, non-GAAP diluted net income per share, adjusted EBITDA, non-GAAP costs and expenses, adjusted net income, adjusted net margin, adjusted diluted net income per share, and adjusted free cash flow. In order to present revenues on a constant currency basis for the fiscal quarter and year ended December 31, 2019, Twitter translated the applicable measure using the prior year’s monthly exchange rates for its settlement currencies other than the US dollar. Twitter defines non-GAAP income before income taxes as income before income taxes adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, non-cash interest expense related to convertible notes, non-cash expense related to acquisitions, impairment (gain) on investments in privately held companies, restructuring charges, and one-time nonrecurring gain, if any; Twitter defines non-GAAP provision (benefit) for income taxes as the current and deferred income tax expense commensurate with the non-GAAP measure of profitability using the estimated annual effective tax rate, which is dependent on the jurisdictional mix of earnings; and Twitter defines non-GAAP net income as net income adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, non-cash interest expense related to convertible notes, non-cash expense related to acquisitions, impairment (gain) on investments in privately held companies, restructuring charges, and one-time nonrecurring gain, if any, and adjustment to income tax expense based on the non-GAAP measure of profitability using the estimated annual effective tax rate, which is dependent on the jurisdictional mix of earnings. Non-GAAP diluted net income per share is calculated by dividing non-GAAP net income by GAAP diluted share count. Twitter defines adjusted EBITDA as net income adjusted to exclude stock-based compensation expense, depreciation and amortization expense, interest and other expense, net, provision (benefit) for income taxes, restructuring charges, and one-time nonrecurring gain, if any. Twitter defines non-GAAP costs and expenses as total costs and expenses adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets, non-cash expense related to acquisitions, restructuring charges, and one-time nonrecurring gain, if any. We have presented adjusted net income solely to exclude the income tax benefit from the establishment of deferred tax assets related to intra-entity transfers of intangible assets in the year ended December 31, 2019, and related to the release of deferred tax assets valuation allowance in the quarter and year ended December 31, 2018, and no other adjustments were made in the calculation of these measures. Adjusted net margin is calculated by dividing adjusted net income by GAAP revenue. Adjusted diluted net income per share is calculated by dividing adjusted net income by GAAP diluted share count. Adjusted free cash flow is GAAP net cash provided by operating activities less capital expenditures (i.e., purchases of property and equipment including equipment purchases that were financed through finance leases, less proceeds received from the disposition of property and equipment).

Twitter is presenting these non-GAAP financial measures to assist investors in seeing Twitter’s operating results through the eyes of management, and because it believes that these measures provide an additional tool for investors to use in comparing Twitter’s core business operating results over multiple periods with other companies in its industry.

Twitter believes that revenues on a constant currency basis, non-GAAP income before income taxes, non-GAAP provision (benefit) for income taxes, non-GAAP net income, non-GAAP diluted net income per share, adjusted EBITDA, non-GAAP costs and expenses, adjusted net income, adjusted net margin, and adjusted dilutive net income per share provide useful information about its operating results, enhance the overall understanding of Twitter’s past performance and future prospects, and allow for greater transparency with respect to key metrics used by Twitter’s management in its financial and operational decision-making. Twitter uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Twitter believes that revenues on a constant currency basis is a useful metric that facilitates comparison to its historical performance. Twitter believes that non-GAAP net income, non-GAAP diluted net income per share, adjusted EBITDA, non-GAAP costs and expenses, adjusted net income, adjusted net margin, and adjusted diluted net income per share help identify underlying trends in its business that could otherwise be masked by expenses and one-time gains or charges that it excludes in non-GAAP net income, non-GAAP diluted net income per share, adjusted EBITDA, non-GAAP costs and expenses, adjusted net income, adjusted net margin, and adjusted diluted net income per share, or the effect of the one-time income tax benefits related to the establishment of deferred tax assets or the release of deferred tax assets valuation allowance described above, which are non-operating benefits. In addition, Twitter believes that adjusted free cash flow provides useful information to management and investors about the amount of cash from operations and that it is typically a more conservative measure of cash flows. However, adjusted free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of its ability to fund its cash needs.

These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies.

Contacts

Investors:
Cherryl Valenzuela
ir@twitter.com

Press:

Giovanna Falbo
press@twitter.com

TWITTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)




December 31, 2019


December 31, 2018

Assets





Current assets:





Cash and cash equivalents


$

1,799,082



$

1,894,444


Short-term investments


4,839,970



4,314,957


Accounts receivable, net


850,184



788,700


Prepaid expenses and other current assets


130,839



112,935


Total current assets


7,620,075



7,111,036


Property and equipment, net


1,031,781



885,078


Operating lease right-of-use assets


697,095




Intangible assets, net


55,106



45,025


Goodwill


1,256,699



1,227,269


Deferred tax assets, net


1,908,086



808,459


Other assets


134,547



85,705


Total assets


$

12,703,389



$

10,162,572


Liabilities and stockholders' equity





Current liabilities:





Accounts payable


$

161,148



$

145,186


Accrued and other current liabilities


500,893



405,751


Convertible notes, short-term




897,328


Operating lease liabilities, short-term


146,959




Finance lease liabilities, short-term


23,476



68,046


Total current liabilities


832,476



1,516,311


Convertible notes, long-term


1,816,833



1,730,922


Senior notes, long-term


691,967




Operating lease liabilities, long-term


609,245




Finance lease liabilities, long-term


205



24,394


Deferred and other long-term tax liabilities, net


24,170



17,849


Other long-term liabilities


24,107



67,502


Total liabilities


3,999,003



3,356,978


Stockholders' equity:





Common stock


4



4


Additional paid-in capital


8,763,330



8,324,974


Accumulated other comprehensive loss


(70,534)



(65,311)


Retained earnings (accumulated deficit)


11,586



(1,454,073)


Total stockholders' equity


8,704,386



6,805,594


Total liabilities and stockholders' equity


$

12,703,389



$

10,162,572












TWITTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)




Three Months Ended
December 31,


Year Ended
December 31,



2019


2018


2019


2018

Revenue


$

1,007,341



$

908,836



$

3,459,329



$

3,042,359


Costs and expenses









Cost of revenue


314,008



268,345



1,137,041



964,997


Research and development


198,240



141,174



682,281



553,858


Sales and marketing


241,561



211,774



913,813



771,361


General and administrative


100,648



80,635



359,821



298,818


Total costs and expenses


854,457



701,928



3,092,956



2,589,034


Income from operations


152,884



206,908



366,373



453,325


Interest expense


(26,377)



(37,273)



(138,180)



(132,606)


Interest income


33,927



37,013



157,703



111,221


Other income (expense), net


(2,340)



(111)



4,243



(8,396)


Income before income taxes


158,094



206,537



390,139



423,544


Provision (benefit) for income taxes


39,321



(48,766)



(1,075,520)



(782,052)


Net income


$

118,773



$

255,303



$

1,465,659



$

1,205,596


Net income per share:









Basic


$

0.15



$

0.34



$

1.90



$

1.60


Diluted


$

0.15



$

0.33



$

1.87



$

1.56


Weighted-average shares used to compute net income per share:









Basic


776,647



760,525



770,729



754,326


Diluted


788,684



776,129



785,531



772,686


TWITTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)




Three Months Ended
December 31,


Year Ended
December 31,



2019


2018


2019


2018

Cash flows from operating activities









Net income


$

118,773



$

255,303



$

1,465,659



$

1,205,596


Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation and amortization expense


116,473



110,723



465,549



425,498


Stock-based compensation expense


101,296



81,887



378,025



326,228


Amortization of discount on convertible notes


20,047



31,017



113,298



105,926


Deferred income taxes


15,782



66,481



84,369



43,409


Deferred tax assets valuation allowance release




(119,835)





(845,129)


Deferred tax assets establishment related to intra-entity transfers of intangible assets






(1,206,880)




Impairment of investments in privately-held companies






1,550



3,000


Other adjustments


(3,065)



(8,301)



(16,906)



(14,139)


Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions:









Accounts receivable


(160,932)



(166,260)



(67,000)



(130,871)


Prepaid expenses and other assets


(8,386)



23,236



(29,602)



126,470


Operating lease right-of-use assets


45,018





149,880




Accounts payable


15,545



21,057



2,946



(1,533)


Accrued and other liabilities


52,303



36,691



92,681



95,256


Operating lease liabilities


(35,675)





(130,205)




Net cash provided by operating activities


277,179



331,999



1,303,364



1,339,711


Cash flows from investing activities









Purchases of property and equipment


(151,615)



(74,021)



(540,688)



(483,934)


Proceeds from sales of property and equipment


1,868



4,943



6,158



13,070


Purchases of marketable securities


(1,857,429)



(1,280,084)



(5,798,111)



(5,334,396)


Proceeds from maturities of marketable securities


776,235



982,546



4,928,097



3,732,973


Proceeds from sales of marketable securities


193,791



16,590



367,116



58,721


Purchases of investments in privately-held companies




(1,200)



(51,163)



(3,375)


Proceeds from sales of long-lived assets






11,781




Business combinations, net of cash acquired


(9,362)





(29,664)



(33,572)


Other investing activities




(5,000)



(9,500)



(5,000)


Net cash used in investing activities


(1,046,512)



(356,226)



(1,115,974)



(2,055,513)


Cash flows from financing activities









Proceeds from issuance of senior notes


700,000





700,000




Proceeds from issuance of convertible notes








1,150,000


Purchases of convertible note hedges








(267,950)


Proceeds from issuance of warrants concurrent with note hedges








186,760


Debt issuance costs


(8,070)



(300)



(8,070)



(13,783)


Repayment of convertible notes






(935,000)




Taxes paid related to net share settlement of equity awards


(2,899)



(3,083)



(19,594)



(19,263)


Payments of finance lease obligations


(13,050)



(20,847)



(66,677)



(90,351)


Proceeds from exercise of stock options


35



164



788



3,415


Proceeds from issuances of common stock under employee stock purchase plan


17,169



12,951



42,378



29,288


Net cash provided by (used in) financing activities


693,185



(11,115)



(286,175)



978,116


Net increase (decrease) in cash, cash equivalents and restricted cash


(76,148)



(35,342)



(98,785)



262,314


Foreign exchange effect on cash, cash equivalents and restricted cash


6,366



915



4,576



(14,296)


Cash, cash equivalents and restricted cash at beginning of period


1,897,448



1,956,302



1,921,875



1,673,857


Cash, cash equivalents and restricted cash at end of period


$

1,827,666



$

1,921,875



$

1,827,666



$

1,921,875


Supplemental cash flow data









Income taxes paid in cash


$

5,778



$

6,244



$

20,144



$

33,065


Supplemental disclosures of non-cash investing and financing activities









Common stock issued in connection with acquisitions


$



$



$



$

19,165


Equipment purchases under finance leases


$



$



$



$

16,086


Changes in accrued property and equipment purchases


$

(11,694)



$

5,148



$

14,985



$

(23,469)


Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated
statements of cash flows









Cash and cash equivalents


$

1,799,082



$

1,894,444



$

1,799,082



$

1,894,444


Restricted cash included in prepaid expenses and other current assets


1,862



1,698



1,862



1,698


Restricted cash included in other assets


26,722



25,733



26,722



25,733


Total cash, cash equivalents and restricted cash


$

1,827,666



$

1,921,875



$

1,827,666



$

1,921,875



TWITTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)




Three Months Ended


Year Ended



December 31,


December 31,



2019


2018


2019


2018

Non-GAAP net income and net income per share:









Net income


$

118,773



$

255,303



$

1,465,659



$

1,205,596


Exclude: Provision (benefit) for income taxes


39,321



(48,766)



(1,075,520)



(782,052)


Income before income taxes


158,094



206,537



390,139



423,544


Stock-based compensation expense


101,296



81,887



378,025



326,228


Amortization of acquired intangible assets


4,034



4,786



16,543



18,984


Non-cash interest expense related to convertible notes


20,047



31,017



113,298



105,926


Impairment (gain) on investments in privately-held companies






(8,611)



3,000


Restructuring charges




(2,989)



(217)



(4,255)


Non-GAAP income before income taxes


283,471



321,238



889,177



873,427


Non-GAAP provision (benefit) for income taxes(1)


87,859



77,097



(970,493)



209,623


Non-GAAP net income


$

195,612



$

244,141



$

1,859,670



$

663,804


GAAP diluted shares


788,684



776,129



785,531



772,686


Non-GAAP diluted net income per share


$

0.25



$

0.31



$

2.37



$

0.86


Adjusted EBITDA:









Net income


$

118,773



$

255,303



$

1,465,659



$

1,205,596


Stock-based compensation expense


101,296



81,887



378,025



326,228


Depreciation and amortization expense


116,473



110,723



465,549



425,498


Interest and other expense, net


(5,210)



371



(23,766)



29,781


Provision (benefit) for income taxes


39,321



(48,766)



(1,075,520)



(782,052)


Restructuring charges




(2,989)



(217)



(4,255)


Adjusted EBITDA


$

370,653



$

396,529



$

1,209,730



$

1,200,796


Stock-based compensation expense by function:









Cost of revenue


$

6,019



$

4,905



$

22,797



$

17,289


Research and development


59,564



43,589



209,063



183,799


Sales and marketing


21,717



18,624



85,739



71,305


General and administrative


13,996



14,769



60,426



53,835


Total stock-based compensation expense


$

101,296



$

81,887



$

378,025



$

326,228


Amortization of acquired intangible assets by function:









Cost of revenue


$

4,034



$

4,321



$

15,923



$

17,124


Sales and marketing




465



620



1,860


Total amortization of acquired intangible assets


$

4,034



$

4,786



$

16,543



$

18,984


Restructuring charges by function:









Cost of revenue


$



$

(179)



$

(13)



$

(257)


Research and development




(1,011)



(73)



(1,436)


Sales and marketing




(1,208)



(87)



(1,722)


General and administrative




(591)



(44)



(840)


Total restructuring charges


$



$

(2,989)



$

(217)



$

(4,255)


Non-GAAP costs and expenses:









Total costs and expenses


$

854,457



$

701,928



$

3,092,956



$

2,589,034


Less: stock-based compensation expense


(101,296)



(81,887)



(378,025)



(326,228)


Less: amortization of acquired intangible assets


(4,034)



(4,786)



(16,543)



(18,984)


Less: restructuring charges




2,989



217



4,255


Total non-GAAP costs and expenses


$

749,127



$

618,244



$

2,698,605



$

2,248,077


Adjusted free cash flow:









Net cash provided by operating activities


$

277,179



$

331,999



$

1,303,364



$

1,339,711


Less: purchases of property and equipment


(151,615)



(74,021)



(540,688)



(483,934)


Plus: proceeds from sales of property and equipment


1,868



4,943



6,158



13,070


Less: equipment purchases under finance leases








(16,086)


Adjusted free cash flow


$

127,432



$

262,921



$

768,834



$

852,761


Adjusted net income and adjusted diluted net income per share:









Net income


$

118,773



$

255,303



$

1,465,659



$

1,205,596


Exclude: benefit from deferred tax assets (2)




(119,835)



(1,206,880)



(845,129)


Adjusted net income


$

118,773



$

135,468



$

258,779



$

360,467


GAAP diluted shares


788,684



776,129



785,531



772,686


Adjusted diluted net income per share


$

0.15



$

0.17



$

0.33



$

0.47











(1) The non-GAAP benefit from income taxes for the year ended December 31, 2019 includes a benefit of $1.21 billion from the establishment of deferred tax assets from intra-entity transfers of intangible assets.


(2) The benefit from deferred tax asset in the year ended December 31, 2019 is primarily related to the establishment of deferred tax assets from intra-entity transfers of intangible assets. The benefit from deferred tax assets valuation allowance release in the three months ended December 31, 2018 represents the change in estimate for the full year realization of our deferred tax assets. The benefit from deferred tax assets in the year ended December 31, 2018 is primarily due to income tax benefits primarily driven by the release of deferred tax assets valuation allowance for the United States and Brazil.

TWITTER, INC.
RECONCILIATION OF GAAP REVENUE TO NON-GAAP CONSTANT CURRENCY REVENUE
(In millions)
(Unaudited)




Three Months Ended


Year Ended



December 31,


December 31,



2019


2018


2019


2018

Revenue, advertising revenue, data licensing and other revenue, international
revenue and international advertising revenue excluding foreign exchange
effect:









Revenue(1)


$

1,007



$

909



$

3,459



$

3,042


Foreign exchange effect on 2019 revenue using 2018 rates


(1)





26




Revenue excluding foreign exchange effect


$

1,006





$

3,485




Revenue year-over-year change percent


11

%




14

%



Revenue excluding foreign exchange effect year-over-year change percent


11

%




15

%












Advertising revenue


$

885



$

791



$

2,993



$

2,617


Foreign exchange effect on 2019 advertising revenue using 2018 rates


(1)





26




Advertising revenue excluding foreign exchange effect


$

884





$

3,019




Advertising revenue year-over-year change percent


12

%




14

%



Advertising revenue excluding foreign exchange effect year-over-year change percent


12

%




15

%












Data licensing and other revenue


$

123



$

118



$

466



$

425


Foreign exchange effect on 2019 data licensing and other revenue using 2018 rates









Data licensing and other revenue excluding foreign exchange effect


$

123





$

466




Data licensing and other revenue year-over-year change percent


5

%




10

%



Data licensing and other revenue excluding foreign exchange effect year-over-year change percent


5

%




10

%












International revenue


$

416



$

403



$

1,515



$

1,400


Foreign exchange effect on 2019 international revenue using 2018 rates


(1)





26




International revenue excluding foreign exchange effect


$

415





$

1,541




International revenue year-over-year change percent


3

%




8

%



International revenue excluding foreign exchange effect year-over-year change percent


3

%




10

%












International advertising revenue


$

375



$

366



$

1,358



$

1,264


Foreign exchange effect on 2019 international advertising revenue using 2018 rates


(1)





26




International advertising revenue excluding foreign exchange effect


$

374





$

1,384




International advertising revenue year-over-year change percent


3

%




7

%



International advertising revenue excluding foreign exchange effect year-over-year change percent


2

%




9

%












(1) Note the sum of advertising revenue and data licensing and other revenue does not add up to total revenue in the three months ended December 31, 2019 above due to rounding.

View original content: http://www.prnewswire.com/news-releases/twitter-announces-fourth-quarter-and-fiscal-year-2019-results-301000248.html

SOURCE Twitter, Inc.