Twitter, Inc. (NYSE:TWTR) Q3 2016 Earnings Conference Call - Final Transcript
Oct 27, 2016 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the Twitter Third Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session and instructions will follow at that time.
I would now like to turn the call over to your host, Krista Bessinger, Senior Director, Investor Relations. Please go ahead.
Good morning, everyone, and thanks for joining our Q3 earnings conference call. We have with us today our CEO, Jack Dorsey; COO, Adam Bain; and CFO, Anthony Noto.
We hope you've had a chance to read our shareholder letter published on our Investor Relations website a little while ago. Like last quarter, we'll begin with just a few prepared remarks before opening the call directly to your questions. During the Q&A, we'll take questions asked via Twitter and additional questions from conference call participants. Questions submitted via Twitter should be directed to @TwitterIR using the hashtag TWTR.
And with that, I would like to turn it over to Jack.
Thanks, Krista. Hi, everyone, and thank you for joining us. 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 seeing accelerating growth in our audience engagement metrics and we set a goal of driving towards GAAP profitability in 2017. Last year, we set out to do three things: increase our discipline, simplify our service, and explain what Twitter is and why people should use it. This strategy is working.
We hit an inflection point in Q2 and the positive trends are continuing. Product changes are driving an acceleration in year-over-year growth for daily active usage, tweet impressions and time spent for the second consecutive quarter. We're shipping rapidly and see a significant opportunity to increase growth as we continue to refine the core service. We're also taking important steps to make Twitter safer for everyone, with updates to share in the coming weeks.
Our live strategy is off to a great start. We launched a high quality experience, and our live events are delivering strong audience and engagement results. We've received very positive feedback from people using the service, advertisers, and partners, and we're getting more disciplined about how we invest in the business. We fully funded our most critical initiatives, and we set a goal of driving towards GAAP profitability in 2017 as we de-prioritize certain initiatives and simplify how we operate. As part of this, we decided to reduce the size of our organization by 9%, mostly concentrated in sales, partnerships, and marketing.
In conclusion, as our results show, our strategy is working. We're seeing accelerating growth in our key audience and engagement metrics, and we're taking the necessary steps to ensure Twitter is well-positioned for long-term growth as we go towards GAAP profitability in 2017.
And with that, let me hand it back over to Krista