Twitter, Inc. (NYSE:TWTR) Q3 2020 Earnings Conference Call - Final Transcript

Oct 29, 2020 • 05:00 pm ET


Twitter, Inc. (NYSE:TWTR) Q3 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Twitter Third Quarter 2020 Earnings Conference Call. [Operator Instructions]

Later, we will 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, Director, Investor Relations. Please go ahead.

Krista Bessinger

Hi, everyone, and thanks for joining our Q3 earnings conference call. We have Jack and Ned with us today. We published our shareholder letter on our Investor Relations website and with the SEC about an hour ago, and hope everyone had a chance to read it. We will keep our opening remarks brief, so that we can dive right into your questions.

As a reminder, we will take questions asked on Twitter. So please tweet us at @TwitterIR using the hashtag TWTR. During this call, we will make forward-looking statements, including statements about our business outlook and strategies. These comments are based on our predictions and expectations as of today. Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors in our most recent 10-Q and upcoming 10-Q to be filed with the SEC.

Also during this call, we will discuss certain non-GAAP financial measures. We have reconciled those to the most directly comparable GAAP financial measures in our shareholder letter. These non-GAAP measures are not intended to be a substitute for our GAAP results and finally, this call in its entirety is being webcast from our Investor Relations website, and an audio replay will be available on Twitter and on the website in a few hours.

And with that, I would like to turn it over to Jack.

Jack Dorsey

Hi everyone, thank you for joining us. We realize there is a ton of companies reporting today and you're probably pretty busy. So we want to optimize your time on your questions. So Ned is going to quickly cover a number of the key points from our shareholder letter and then we will both get to your questions. Ned?

Ned Segal

Thanks, Jack. Good afternoon, everyone. As you can see from our results, our hard work positions Twitter to deliver significant revenue improvement in Q3. We saw strength throughout the quarter, as advertisers around the world, significantly increased our investment on seeking to engage our much larger audience around the return of events and increased or delayed product launches. Our revenue product improvements are driving better ROI as businesses accelerate their digital spend and the online delivery of products and services.

In the last three weeks of Q3, ad revenue was up 19% year-over-year, so it's fairly consistent daily growth rates during that period. That's a significant improvement from the 15% year-over-year decrease that we saw in the last two weeks of Q2, and perhaps a good demonstration of how we can perform when so many events and product launches, all of which typically fall in that window are driving more people and advertisers to Twitter.

As you know, we made revenue durability our