Twitter, Inc. (NYSE:TWTR) Q4 2017 Earnings Conference Call - Final Transcript

Feb 08, 2018 • 08:00 am ET

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Twitter, Inc. (NYSE:TWTR) Q4 2017 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you.

(Operator Instructions)

Executive
Krista Bessinger

Thank you. And it looks like our first question comes from Doug Anmuth at JPMorgan. Doug, please go ahead.

Analyst
Doug Anmuth

Thanks for taking the question. I have two. First, can you just talk about the key factors improving your ad relevance in the quarter, in particular, some of the stuff around ad serving logic and just what improved clickthrough rate? And then just second on DAU growth, your fifth straight quarter of consecutive double-digit DAU growth. How do you think about the potential to grow DAUs going forward even as MAU growth has been more muted? If you could talk about that. Thanks.

Executive
Jack Dorsey

Yes. So, in terms of improved ROI and what's going on with our ad relevance drivers and the drivers in general, we're benefiting from a much larger engaged audience, so we've seen eight quarters of solid year-over-year growth and DAU over the last five quarters posting double-digit growth. We have a lower price, so CPE is down more 40% year-over-year in aggregate. Our products are performing better with a higher CTR. We continue to be a differentiated offering to our advertisers, so we're delivering an influential audience and real-time relevance for audience. And we've also been investing a lot in measurement as well, so we're scaling our measurement capabilities to 62% more custom studies in Q4 2017 versus a year ago.

Executive
Ned Segal

And, Doug, to your question on DAU, we don't give guidance for audience and engagement growth, but we do feel like the product improvements that we've made over the last couple of years ought to continue to compound and should be a driver of audience and engagement growth going forward.

Analyst
Doug Anmuth

Great. Thank you both.

Operator
Operator

Thank you. And our next question comes from Heath Terry at Goldman Sachs. Heath, please go ahead.

Analyst
Heath Terry

Great. Thank you. To follow up a bit on the question of growth, to the extent that we saw relatively stable MAUs this quarter, we know that you've undertaken some efforts to improve the quality of the MAUs on the platform or the quality of the users on the platform eliminating bots and enforcing some of the safety policies more aggressively. Should we look at this 330 million this quarter compared to say 330 million last quarter and consider it a higher quality number? And then to the extent that we are thinking about user growth into 2018, are initiatives around those same sort of trust and safety things likely to impact that reported number?

Executive
Ned Segal

So, why doesn't Jack start on IQ and then I'll go into the numbers a little bit for you.

Executive
Jack Dorsey

So, just to give you an update on how we're thinking about information quality, this is a new term we used in our letter and I wanted to define it for you. We're looking at information quality as a cohesive way of addressing all malicious activity on the service and that's inclusive of spam, malicious automations and also fake accounts.

And we have three main priorities in this approach.