Twitter, Inc. (NYSE:TWTR) Q3 2016 Earnings Conference Call - Final Transcript

Oct 27, 2016 • 05:00 pm ET


Twitter, Inc. (NYSE:TWTR) Q3 2016 Earnings Conference Call - Final Transcript


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Q & A

Ross Sandler at Deutsche Bank.

Ross Sandler

Yeah, sure. Thanks, guys. Jack, in the letter you mentioned that live video is driving solid engagement with light Twitter users, so can you just talk about the strategy there? Is the goal to bring on more premium content, like the NFL or Bloomberg TV? Or kind of balance that with UGC? And what is the conversion rate of these new folks who are getting the live video experience to regular Twitter users look like?

And then the second question, I guess for Anthony or for Adam, the owned and operated revenue growth was up 9%, and I think you guys said in the letter you're reducing the ad load again in the quarter. You're also seeing DAUs accelerate. So if we kind of look at 2017, is this the year where we'll start to see a reacceleration in owned and operated? And is 4Q likely to be the trough quarter for that line? Any color there would be great. Thanks guys.

Krista Bessinger

So, Ross, thanks for the question. I'll just let you know we're having a little bit of a hard time with some technical difficulties hearing the full part of -- your full question. I think we understood the first part about NFL, so we'll go ahead and have Anthony answer that, and in the meantime, we'll try to fix the audio so that we can actually hear the latter part of your question. But we'll probably ask you to restate it.

Anthony Noto

Thanks, Ross, and good morning, everyone. Our live initiative is off to a very promising start. Our number one objective when we launched in September behind the NFL and then all of the great programming that followed that was quality, and we couldn't be more pleased with the feedback on the live experience on Twitter. Our team did a great job building a product that can scale to many millions of users in three short months. In addition to building the product for our Twitter platforms, we also built it for a logged out experience on a number of our partners, including web syndication partners, Yahoo!, AOL, Sports Illustrated and SBNation, in addition to connect to TV partners Apple, Amazon and Microsoft.

Another significant technical accomplishment was that we developed and launched dynamic ad insertion. That's very important, given the auction dynamics of our overall advertising marketplace, to be able to deliver specific targeted ads to individual people, as opposed to everyone getting the same ad, and we've seen great response there as well. All of that said, we're at the beginning of the beginning as it relates to our product enhancements, and we have a robust roadmap for easier discovery, more engagement and more conversation.

As it relates to the NFL in particular, we're very pleased with not only the quality of the product, the feedback that we've gotten from our audience, but also the metrics that we achieved. At the highest level, we had forecasted a range of 1 million to