Twitter, Inc. (NYSE:TWTR) Q3 2018 Earnings Conference Call - Final Transcript

Oct 25, 2018 • 08:00 am ET


Twitter, Inc. (NYSE:TWTR) Q3 2018 Earnings Conference Call - Final Transcript


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Q & A

(Operator Instructions) Ross Sandler, Barclays.

Ross Sandler

Ned, question on the ad revenue. US ad revenue was up pretty massively quarter-on-quarter and year-on-year. So can you provide some additional color on what's driving that strength, maybe parsing between top 100 and your newer kind of middle market initiatives? And do you think that you're benefiting from some of the problems that other companies in social media might be having currently? And then what do you think is a sustainable growth trajectory for the US ad business as we look forward? Thank you.

Ned Segal

So a couple of things in there. We are really pleased with our performance overall as we outperformed our expectations across most products and geographies. The US was a big driver of that. The business turned faster and more aggressively than we expected this quarter. There's no change to the strategy, which drove that, continuing to deliver great ad formats to deliver strong relevance to help advertisers measure the success of their campaigns on Twitter is really driving our success, much as it did internationally. When we talked about the top 100 advertisers growing a year ago, that was a sign that the turnaround was beginning and we felt really good about the momentum that we've got going into the seasonally strong fourth quarter for us.

You asked about the mix between large and smaller advertisers. The work that we've done really does benefit all the advertisers on the platform around better ad formats and relevance, but there's still work in front of us to support the millions of small businesses on Twitter who reach their customers on Twitter in many ways, but might not pay us yet for advertising. So we'll have to resource that before we can really realize the potential around it.

You also asked about competition; I'll just spend a minute there. We feel like there's so much that's in our control right now, and we feel like our strategy and our execution has done a tremendous amount to lead to the success that we're delivering against today. And so, we're just focused on the things that we can do to deliver success right now.

This is a good time to just turn to Jack and talk about advertiser sentiment, because things are -- we're seeing such great things from advertisers right now. We should hear from him.

Jack Dorsey

Yeah. So I had the opportunity to visit with a number of our advertisers and agencies in New York during ad week. And we have this Influence Council which meets on a regular basis just to get feedback from our advertisers and agencies on how we're doing, what feedback they have for us, anything critical that we should be paying attention to. And the sentiment is really positive. There's a lot of appreciation for our focus, and that's certainly on -- that superpower of conversation, but also the focus on health and increasing health in the public conversation.

We've got a lot of high marks around how we're communicating