10-Q 1 twtr-20210930.htm 10-Q twtr-20210930
false2021Q3000141809112/313110.01287930.01750010.02409640.076905P2Y00014180912021-01-012021-09-30xbrli:shares00014180912021-10-22iso4217:USD00014180912021-09-3000014180912020-12-31iso4217:USDxbrli:shares00014180912021-07-012021-09-3000014180912020-07-012020-09-3000014180912020-01-012020-09-300001418091us-gaap:CommonStockMember2021-06-300001418091us-gaap:CommonStockMember2020-06-300001418091us-gaap:CommonStockMember2020-12-310001418091us-gaap:CommonStockMember2019-12-310001418091us-gaap:CommonStockMember2021-07-012021-09-300001418091us-gaap:CommonStockMember2020-07-012020-09-300001418091us-gaap:CommonStockMember2021-01-012021-09-300001418091us-gaap:CommonStockMember2020-01-012020-09-300001418091us-gaap:CommonStockMember2021-09-300001418091us-gaap:CommonStockMember2020-09-300001418091us-gaap:AdditionalPaidInCapitalMember2021-06-300001418091us-gaap:AdditionalPaidInCapitalMember2020-06-300001418091us-gaap:AdditionalPaidInCapitalMember2020-12-310001418091us-gaap:AdditionalPaidInCapitalMember2019-12-310001418091us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001418091us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001418091us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001418091us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001418091srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2020-12-310001418091us-gaap:AdditionalPaidInCapitalMember2021-09-300001418091us-gaap:AdditionalPaidInCapitalMember2020-09-300001418091us-gaap:TreasuryStockMember2021-06-300001418091us-gaap:TreasuryStockMember2020-12-310001418091us-gaap:TreasuryStockMember2021-07-012021-09-300001418091us-gaap:TreasuryStockMember2021-01-012021-09-300001418091us-gaap:TreasuryStockMember2021-09-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001418091us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001418091us-gaap:RetainedEarningsMember2021-06-300001418091us-gaap:RetainedEarningsMember2020-06-300001418091us-gaap:RetainedEarningsMember2020-12-310001418091us-gaap:RetainedEarningsMember2019-12-310001418091srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-12-310001418091srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310001418091us-gaap:RetainedEarningsMember2021-07-012021-09-300001418091us-gaap:RetainedEarningsMember2020-07-012020-09-300001418091us-gaap:RetainedEarningsMember2021-01-012021-09-300001418091us-gaap:RetainedEarningsMember2020-01-012020-09-300001418091us-gaap:RetainedEarningsMember2021-09-300001418091us-gaap:RetainedEarningsMember2020-09-3000014180912020-09-3000014180912019-12-310001418091srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-01-010001418091srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-01-012021-01-010001418091us-gaap:AccountingStandardsUpdate202006Member2021-07-012021-09-300001418091us-gaap:AccountingStandardsUpdate202006Member2021-01-012021-09-300001418091twtr:AdvertisingServicesMember2021-07-012021-09-300001418091twtr:AdvertisingServicesMember2020-07-012020-09-300001418091twtr:AdvertisingServicesMember2021-01-012021-09-300001418091twtr:AdvertisingServicesMember2020-01-012020-09-300001418091twtr:DataLicensingAndOtherMember2021-07-012021-09-300001418091twtr:DataLicensingAndOtherMember2020-07-012020-09-300001418091twtr:DataLicensingAndOtherMember2021-01-012021-09-300001418091twtr:DataLicensingAndOtherMember2020-01-012020-09-300001418091country:US2021-07-012021-09-300001418091country:US2020-07-012020-09-300001418091country:US2021-01-012021-09-300001418091country:US2020-01-012020-09-300001418091country:JP2021-07-012021-09-300001418091country:JP2020-07-012020-09-300001418091country:JP2021-01-012021-09-300001418091country:JP2020-01-012020-09-300001418091twtr:RestOfWorldMember2021-07-012021-09-300001418091twtr:RestOfWorldMember2020-07-012020-09-300001418091twtr:RestOfWorldMember2021-01-012021-09-300001418091twtr:RestOfWorldMember2020-01-012020-09-3000014180912021-10-012021-09-3000014180912022-01-012021-09-3000014180912023-01-012021-09-3000014180912024-01-012021-09-300001418091us-gaap:MoneyMarketFundsMember2021-09-300001418091us-gaap:MoneyMarketFundsMember2020-12-310001418091twtr:CorporateNotesCommercialPaperAndCertificatesOfDepositMember2021-09-300001418091twtr:CorporateNotesCommercialPaperAndCertificatesOfDepositMember2020-12-310001418091us-gaap:USTreasuryAndGovernmentShorttermDebtSecuritiesMember2021-09-300001418091us-gaap:USTreasuryAndGovernmentShorttermDebtSecuritiesMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateNoteSecuritiesMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateNoteSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateNoteSecuritiesMember2021-09-300001418091us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418091us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2021-09-300001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateNoteSecuritiesMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateNoteSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateNoteSecuritiesMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-12-310001418091us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001418091us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2020-12-310001418091us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2020-12-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2021-09-30xbrli:pure0001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMemberus-gaap:FairValueInputsLevel3Member2021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMember2021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2021-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2021-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001418091us-gaap:FairValueInputsLevel2Member2021-09-300001418091us-gaap:FairValueInputsLevel3Member2021-09-300001418091us-gaap:TechnologyEquipmentMember2021-09-300001418091us-gaap:TechnologyEquipmentMember2020-12-310001418091twtr:FurnitureAndLeaseholdImprovementsMember2021-09-300001418091twtr:FurnitureAndLeaseholdImprovementsMember2020-12-310001418091us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-09-300001418091us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-12-310001418091us-gaap:ConstructionInProgressMember2021-09-300001418091us-gaap:ConstructionInProgressMember2020-12-310001418091country:US2021-09-300001418091country:US2020-12-310001418091us-gaap:NonUsMember2021-09-300001418091us-gaap:NonUsMember2020-12-310001418091twtr:PatentsAndDevelopedTechnologiesMember2021-09-300001418091us-gaap:OtherIntangibleAssetsMember2021-09-300001418091twtr:PatentsAndDevelopedTechnologiesMember2020-12-310001418091us-gaap:OtherIntangibleAssetsMember2020-12-310001418091us-gaap:SettledLitigationMember2021-09-300001418091us-gaap:SettledLitigationMember2020-12-310001418091twtr:FederalTradeCommissionsMemberus-gaap:UnfavorableRegulatoryActionMember2021-09-300001418091twtr:FederalTradeCommissionsMemberus-gaap:UnfavorableRegulatoryActionMember2020-12-310001418091us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-01-012021-09-300001418091us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMemberus-gaap:DevelopedTechnologyRightsMember2021-09-300001418091us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-09-300001418091us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMemberus-gaap:DevelopedTechnologyRightsMember2021-01-012021-09-300001418091twtr:InvestmentsInPrivatelyHeldCompaniesMember2021-03-3100014180912021-04-0100014180912021-04-012021-04-300001418091us-gaap:OtherAssetsMember2021-09-300001418091us-gaap:OtherExpenseMember2021-07-012021-09-300001418091us-gaap:OtherExpenseMember2021-01-012021-09-300001418091us-gaap:OtherExpenseMember2020-07-012020-09-300001418091us-gaap:OtherExpenseMember2020-01-012020-09-300001418091us-gaap:SubsequentEventMembertwtr:MoPubMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-10-060001418091us-gaap:SubsequentEventMembertwtr:MoPubMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-01-012022-03-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMember2021-03-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMember2021-03-012021-03-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMemberus-gaap:CommonStockMember2021-03-31utr:D0001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMembertwtr:ScenarioOneMemberus-gaap:ConvertibleDebtMembersrt:MinimumMember2021-03-012021-03-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMembertwtr:ScenarioOneMemberus-gaap:ConvertibleDebtMember2021-03-012021-03-31twtr:D0001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMembertwtr:ScenarioTwoMember2021-03-012021-03-310001418091us-gaap:ConvertibleDebtMember2021-03-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMember2021-03-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2014-12-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2014-01-012014-12-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2021-09-152021-09-150001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2018-12-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2018-01-012018-12-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2020-12-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2020-01-012020-12-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMemberus-gaap:CommonStockMember2021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMemberus-gaap:CommonStockMember2021-09-300001418091twtr:ScenarioOneMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneAndFourMemberus-gaap:ConvertibleDebtMembersrt:MinimumMember2021-01-012021-09-300001418091twtr:ScenarioOneMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneAndFourMemberus-gaap:ConvertibleDebtMember2021-01-012021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyOneAndFourMemberus-gaap:ConvertibleDebtMembertwtr:ScenarioTwoMember2021-01-012021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2021-01-012021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2018-12-310001418091us-gaap:ConvertibleDebtMemberus-gaap:CommonStockMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2018-12-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMemberus-gaap:CommonStockMember2018-12-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2018-01-012018-12-310001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2019-12-310001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2019-01-012019-12-310001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2020-12-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2020-12-310001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2020-12-310001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2021-07-012021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2021-01-012021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2021-07-012021-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2021-07-012021-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2021-01-012021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2020-07-012020-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMember2020-01-012020-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2020-01-012020-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMember2020-07-012020-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2020-01-012020-09-300001418091twtr:SeniorNotesDueAtTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2020-07-012020-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMember2021-01-012021-09-300001418091us-gaap:CommonStockMemberus-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2021-01-012021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMemberus-gaap:ConvertibleDebtMemberus-gaap:CommonStockMember2021-01-012021-09-300001418091us-gaap:ConvertibleDebtMembertwtr:ConvertibleNotesDueAtTwoThousandTwentyFiveMemberus-gaap:CommonStockMember2021-01-012021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMemberus-gaap:ConvertibleDebtMemberus-gaap:CommonStockMember2021-03-012021-03-310001418091us-gaap:WarrantMember2021-07-012021-09-300001418091us-gaap:WarrantMember2020-07-012020-09-300001418091us-gaap:WarrantMember2021-01-012021-09-300001418091us-gaap:WarrantMember2020-01-012020-09-300001418091twtr:ConvertibleNotesMember2021-07-012021-09-300001418091twtr:ConvertibleNotesMember2020-07-012020-09-300001418091twtr:ConvertibleNotesMember2021-01-012021-09-300001418091twtr:ConvertibleNotesMember2020-01-012020-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001418091twtr:RestrictedStockAndOtherMember2021-07-012021-09-300001418091twtr:RestrictedStockAndOtherMember2020-07-012020-09-300001418091twtr:RestrictedStockAndOtherMember2021-01-012021-09-300001418091twtr:RestrictedStockAndOtherMember2020-01-012020-09-300001418091us-gaap:StockOptionMember2021-07-012021-09-300001418091us-gaap:StockOptionMember2020-07-012020-09-300001418091us-gaap:StockOptionMember2021-01-012021-09-300001418091us-gaap:StockOptionMember2020-01-012020-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyOneMember2021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentyFourMember2021-09-300001418091twtr:ConvertibleNotesDueAtTwoThousandTwentySixMember2021-09-300001418091twtr:EquityIncentivePlansTwoThousandAndThirteenMember2021-09-300001418091twtr:EquityIncentivePlansTwoThousandAndThirteenMember2021-01-012021-09-3000014180912020-03-310001418091twtr:TwoThousandAndThirteenEmployeeStockPurchasePlanMember2021-09-300001418091twtr:TwoThousandAndThirteenEmployeeStockPurchasePlanMember2021-01-012021-09-300001418091us-gaap:RestrictedStockMembertwtr:AllAcquisitionsMember2021-01-012021-09-300001418091us-gaap:RestrictedStockMember2021-09-300001418091us-gaap:RestrictedStockMember2020-12-310001418091us-gaap:PerformanceSharesMember2019-01-012019-12-310001418091us-gaap:PerformanceSharesMembersrt:ScenarioForecastMember2021-01-012021-12-310001418091us-gaap:PerformanceSharesMember2021-01-012021-09-300001418091us-gaap:PerformanceSharesMember2020-12-310001418091us-gaap:PerformanceSharesMember2021-09-300001418091us-gaap:PerformanceSharesMember2020-01-012020-09-300001418091twtr:MarketBasedRestrictedStockUnitsMembersrt:MaximumMember2021-01-012021-09-300001418091twtr:MarketBasedRestrictedStockUnitsMembersrt:MinimumMember2019-01-012019-12-310001418091twtr:MarketBasedRestrictedStockUnitsMembersrt:MaximumMember2019-01-012019-12-310001418091twtr:MarketBasedRestrictedStockUnitsMember2021-01-012021-09-300001418091twtr:MarketBasedRestrictedStockUnitsMember2020-12-310001418091twtr:TotalShareholderReturnRestrictedStockUnitsMember2021-01-012021-09-300001418091twtr:MarketBasedRestrictedStockUnitsMember2021-09-300001418091twtr:MarketBasedRestrictedStockUnitsMember2020-01-012020-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2020-12-310001418091us-gaap:RestrictedStockUnitsRSUMember2021-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001418091us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001418091us-gaap:CostOfSalesMember2021-07-012021-09-300001418091us-gaap:CostOfSalesMember2020-07-012020-09-300001418091us-gaap:CostOfSalesMember2021-01-012021-09-300001418091us-gaap:CostOfSalesMember2020-01-012020-09-300001418091us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001418091us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-09-300001418091us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001418091us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-09-300001418091us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001418091us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001418091us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001418091us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001418091us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001418091us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001418091us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001418091us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001418091us-gaap:SoftwareDevelopmentMember2021-07-012021-09-300001418091us-gaap:SoftwareDevelopmentMember2020-07-012020-09-300001418091us-gaap:SoftwareDevelopmentMember2021-01-012021-09-300001418091us-gaap:SoftwareDevelopmentMember2020-01-012020-09-300001418091us-gaap:ForeignCountryMember2020-01-012020-09-300001418091us-gaap:ForeignCountryMember2020-06-300001418091us-gaap:RevolvingCreditFacilityMember2021-09-3000014180912021-01-310001418091us-gaap:SettledLitigationMember2021-01-012021-09-300001418091twtr:FederalTradeCommissionsMembersrt:MinimumMemberus-gaap:UnfavorableRegulatoryActionMember2020-06-300001418091srt:MaximumMembertwtr:FederalTradeCommissionsMemberus-gaap:UnfavorableRegulatoryActionMember2020-06-300001418091twtr:FederalTradeCommissionsMemberus-gaap:UnfavorableRegulatoryActionMember2020-06-3000014180912021-01-15

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________
FORM 10-Q
____________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                  TO
Commission File Number 001-36164
____________________________________________________
Twitter, Inc.
(Exact name of registrant as specified in its charter)
____________________________________________________
Delaware
20-8913779
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1355 Market Street, Suite 900
San Francisco, California 94103
(Address of principal executive offices and Zip Code)
(415) 222-9670
(Registrant’s telephone number, including area code)
____________________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.000005 per shareTWTRNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO ☒
The number of shares of the registrant’s common stock outstanding as of October 22, 2021 was 799,609,869.




TABLE OF CONTENTS
Page







2


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
our ability to attract and retain people on Twitter and increase their level of engagement, including ad engagement, and its impact on revenue;
our expectations regarding our revenue growth, including the impact of COVID-19 and Apple’s App Tracking Transparency policy, and our cost and expenses growth;
our expectations regarding our monetizable DAUs (mDAU) growth and growth rates and related opportunities as well as the continued usage of our mobile applications, including the impact of seasonality;
our plans regarding health and safety and our other top priorities, including our expectations regarding the impact on our reported metrics, policies, enforcement and preventing manipulation of our platform;
the impact of the COVID-19 pandemic and related responses of businesses and governments to the pandemic on our operations and personnel, and on commercial activity and advertiser demand across our platform and on our operating results;
our expectations regarding mDAU, changes in cost per ad engagement and changes in ad engagements;
our ability to develop or acquire new products, product features and services, improve our existing products and services, including with respect to Promoted Products, video and performance advertising, and increase the value of our products and services;
our business strategies, plans and priorities, including our plans for headcount growth, investment in our research and development efforts and our plans to scale capacity and enhance capability and reliability of our infrastructure and new data center, including capital expenditures;
our ability to provide new content from third parties, including our ability to secure live streaming video content on terms that are acceptable to us;
our ability to attract advertisers to our platforms, products and services and increase the amount that advertisers spend with us;
our ability to improve monetization of our products and services;
our future financial performance, including trends in cost per ad engagement, revenue (including data licensing revenue), costs and expenses (including stock-based compensation) and income taxes;
the impact of our decision to sell our MoPub business and the timing of the closing of such sale, as well as the expected timing for us to recoup the revenue impact from the sale;
our expectations regarding certain deferred tax assets and fluctuations in our tax expense and cash taxes;
the impact of laws and regulations relating to privacy, data protection and security;
the impact of content- or copyright-related legislation or regulation;
our expectations regarding outstanding litigation or the decisions of the courts and the results of the draft complaint we received from the Federal Trade Commission;
3



the effects of seasonal trends on our results of operations;
the impact of our future transactions and corporate structuring on our income and other taxes;
the sufficiency of our cash and cash equivalents, short-term investment balance and credit facility together with cash generated from operations to meet our working capital and capital expenditure requirements;
our ability to timely and effectively develop, invest in, scale and adapt our existing technology and network infrastructure;
our ability to successfully acquire and integrate companies and assets; and
our expectations regarding international operations and foreign exchange gains and losses.
We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results, cash flows or prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.
4


NOTE REGARDING KEY METRICS
We review a number of metrics, including monetizable daily active usage or users, or mDAU, changes in ad engagements and changes in cost per ad engagement, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. See the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations— Key Metrics” for a discussion of how we calculate mDAU, changes in ad engagements and changes in cost per ad engagement.
We define mDAU as people, organizations, or other accounts who logged in or were otherwise authenticated and accessed Twitter on any given day through twitter.com or Twitter applications that are able to show ads. Average mDAU for a period represents the number of mDAU on each day of such period divided by the number of days for such period. Changes in mDAU are a measure of changes in the size of our daily logged in or otherwise authenticated active total accounts. To calculate the year-over-year change in mDAU, we subtract the average mDAU for the three months ended in the previous year from the average mDAU for the same three months ended in the current year and divide the result by the average mDAU for the three months ended in the previous year. Additionally, our calculation of mDAU is not based on any standardized industry methodology and is not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies. Similarly, our measures of mDAU growth and engagement may differ from estimates published by third parties or from similarly-titled metrics of our competitors due to differences in methodology.
The numbers of mDAU presented in this Quarterly Report on Form 10-Q are based on internal company data. While these numbers are based on what we believe to be reasonable estimates for the applicable period of measurement, there are inherent challenges in measuring usage and engagement across our large number of total accounts around the world. Furthermore, our metrics may be impacted by our information quality efforts, which are our overall efforts to reduce malicious activity on the service, inclusive of spam, malicious automation, and fake accounts. For example, there are a number of false or spam accounts in existence on our platform. We have performed an internal review of a sample of accounts and estimate that the average of false or spam accounts during the third quarter of 2021 represented fewer than 5% of our mDAU during the quarter. The false or spam accounts for a period represents the average of false or spam accounts in the samples during each monthly analysis period during the quarter. In making this determination, we applied significant judgment, so our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated. We are continually seeking to improve our ability to estimate the total number of spam accounts and eliminate them from the calculation of our mDAU, and have made improvements in our spam detection capabilities that have resulted in the suspension of a large number of spam, malicious automation, and fake accounts. We intend to continue to make such improvements. After we determine an account is spam, malicious automation, or fake, we stop counting it in our mDAU, or other related metrics. We also treat multiple accounts held by a single person or organization as multiple mDAU because we permit people and organizations to have more than one account. Additionally, some accounts used by organizations are used by many people within the organization. As such, the calculations of our mDAU may not accurately reflect the actual number of people or organizations using our platform.
In addition, geographic location data collected for purposes of reporting the geographic location of our mDAU is based on the IP address or phone number associated with the account when an account is initially registered on Twitter. The IP address or phone number may not always accurately reflect a person’s actual location at the time they engaged with our platform. For example, someone accessing Twitter from the location of the proxy server that the person connects to rather than from the person’s actual location.
We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy.
5


PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
TWITTER, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
September 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents$3,473,865 $1,988,429 
Short-term investments3,937,447 5,483,873 
Accounts receivable, net of allowance for doubtful accounts of $14,815 and $16,946
1,014,208 1,041,743 
Prepaid expenses and other current assets194,914 123,063 
Assets held for sale28,800  
Total current assets8,649,234 8,637,108 
Property and equipment, net2,053,480 1,493,794 
Operating lease right-of-use assets1,115,929 930,139 
Intangible assets, net46,702 58,338 
Goodwill1,293,826 1,312,346 
Deferred tax assets, net1,133,816 796,326 
Other assets296,358 151,039 
Total assets$14,589,345 $13,379,090 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$207,912 $194,281 
Accrued and other current liabilities1,688,768 663,532 
Convertible notes, short-term 917,866 
Operating lease liabilities, short-term218,301 177,147 
Total current liabilities2,114,981 1,952,826 
Convertible notes, long-term3,556,934 1,875,878 
Senior notes, long-term693,744 692,994 
Operating lease liabilities, long-term980,764 819,748 
Deferred and other long-term tax liabilities, net40,009 31,463 
Other long-term liabilities30,282 36,099 
Total liabilities7,416,714 5,409,008 
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock, $0.000005 par value-- 200,000 shares authorized; none issued and outstanding
  
Common stock, $0.000005 par value-- 5,000,000 shares authorized; 799,612 and 796,000 shares issued and outstanding
4 4 
Additional paid-in capital8,468,708 9,167,138 
Treasury stock, at cost-- 87 and 98 shares
(5,291)(5,297)
Accumulated other comprehensive loss(106,794)(66,094)
Accumulated deficit(1,183,996)(1,125,669)
Total stockholders' equity7,172,631 7,970,082 
Total liabilities and stockholders' equity$14,589,345 $13,379,090 

The accompanying notes are an integral part of these consolidated financial statements.

6


TWITTER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Revenue
$1,283,817 $936,233 $3,510,262 $2,427,308 
Costs and expenses
Cost of revenue
484,479 361,388 1,282,419 933,464 
Research and development
324,252 208,877 874,820 625,071 
Sales and marketing
301,078 215,285 837,572 643,858 
General and administrative
150,855 94,576 409,864 450,181 
Litigation settlement, net765,701  765,701  
Total costs and expenses
2,026,365 880,126 4,170,376 2,652,574 
Income (loss) from operations
(742,548)56,107 (660,114)(225,266)
Interest expense
(13,284)(39,614)(40,362)(112,712)
Interest income
8,125 17,167 28,328 75,077 
Other income (expense), net20,625 (3,977)76,370 (12,057)
Income (loss) before income taxes
(727,082)29,683 (595,778)(274,958)
Provision (benefit) for income taxes
(190,325)1,024 (192,675)1,082,784 
Net income (loss)
$(536,757)$28,659 $(403,103)$(1,357,742)
Net income (loss) per share attributable to common stockholders:
Basic
$(0.67)$0.04 $(0.51)$(1.73)
Diluted
$(0.67)$0.04 $(0.51)$(1.73)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic
797,985 790,827 796,775 785,788 
Diluted
797,985 806,383 796,775 785,788 

The accompanying notes are an integral part of these consolidated financial statements.
7


TWITTER, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Net income (loss)
$(536,757)$28,659 $(403,103)$(1,357,742)
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on investments in available-for-sale securities(3,288)(2,154)(18,096)20,037 
Change in foreign currency translation adjustment(14,450)5,067 (22,604)(39,590)
Net change in accumulated other comprehensive income (loss)(17,738)2,913 (40,700)(19,553)
Comprehensive income (loss)$(554,495)$31,572 $(443,803)$(1,377,295)

The accompanying notes are an integral part of these consolidated financial statements.
8


TWITTER, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
SharesAmountSharesAmountSharesAmountSharesAmount
Common stock
Balance, beginning of period797,941 $4 790,426 $4 796,000 $4 779,619 $4 
Issuance of common stock in connection with RSU vesting4,383 — 4,085 — 13,030 — 12,256 — 
Issuance of common stock in connection with acquisitions— — — — — — 33 — 
Issuance of restricted stock in connection with acquisitions accounted for as stock-based compensation —  — 69 — 1,381 — 
Exercise of stock options7 — 37 — 531 — 301 — 
Issuance of common stock upon purchases under employee stock purchase plan —  — 1,539 — 1,395 — 
Shares withheld related to net share settlement of equity awards(91)— (101)— (334)— (538)— 
Repurchases of common stock(2,574)— — — (11,169)— — — 
Other activities(54)—  — (54)—  — 
Balance, end of period799,612 $4 794,447 $4 799,612 $4 794,447 $4 
Additional paid-in capital
Balance, beginning of period— $8,457,717 — $9,127,495 — $9,167,138 — $8,763,330 
Issuance of common stock in connection with acquisitions— — — — — — — 1,312 
Exercise of stock options— 51 — 31 — 2,037 — 454 
Issuance of common stock upon purchases under employee stock purchase plan—  —  — 39,531 — 34,395 
Shares withheld related to net share settlement of equity awards— (6,215)— (3,726)— (21,712)— (18,344)
Stock-based compensation— 186,612 — 126,156 — 517,145 — 376,600 
Equity component of the convertible note issuance, net— — — — — — — 92,209 
Purchase of convertible note hedge— — — — — (213,469)— — 
Tax related to purchase of convertible note hedge— — — — — 49,262 — — 
Issuance of warrants— — — — — 161,144 — — 
Repurchases of common stock— (169,457)— — — (664,821)— — 
Cumulative-effect adjustment from adoption of new accounting standard— — — — — (567,547)— — 
Balance, end of period— $8,468,708 — $9,249,956 — $8,468,708 — $9,249,956 
Treasury stock
Balance, beginning of period— $(5,298)— $— — $(5,297)— $— 
Retirement of treasury stock— 5,298 — — — 15,892 — — 
Repurchases of common stock— (5,291)— — — (15,886)— — 
Balance, end of period— $(5,291)— $— — $(5,291)— $— 
Accumulated other comprehensive loss
Balance, beginning of period— $(89,056)— $(93,000)— $(66,094)— $(70,534)
Other comprehensive income (loss)— (17,738)— 2,913 — (40,700)— (19,553)
Balance, end of period— $(106,794)— $(90,087)— $(106,794)— $(90,087)
Retained earnings (Accumulated deficit)
Balance, beginning of period— $(647,239)— $(1,376,444)— $(1,125,669)— $11,586 
Cumulative-effect adjustment from adoption of new accounting standards— — — — — 344,776 — (1,629)
Net income (loss)
— (536,757)— 28,659 — (403,103)— (1,357,742)
Balance, end of period— $(1,183,996)— $(1,347,785)— $(1,183,996)— $(1,347,785)
Total stockholders' equity799,612$7,172,631 794,447$7,812,088 799,612 $7,172,631 794,447 $7,812,088 
The accompanying notes are an integral part of these consolidated financial statements.
9


TWITTER, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended September 30,
20212020
Cash flows from operating activities
Net loss
$(403,103)$(1,357,742)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense399,312 366,469 
Stock-based compensation expense453,370 346,748 
Amortization of discount on convertible notes 74,733 
Bad debt expense2,434 16,861 
Deferred income taxes(222,789)(32,382)
Deferred tax assets valuation allowance establishment 1,101,374 
Impairment (gain) on investments in privately-held companies(76,794)8,842 
Other adjustments1,521 (7,756)
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions:
Accounts receivable19,830 97,812 
Prepaid expenses and other assets(78,394)(24,765)
Operating lease right-of-use assets159,891 121,712 
Accounts payable20,701 (5,722)
Accrued and other liabilities1,029,091 76,497 
Operating lease liabilities(143,939)(120,111)
Net cash provided by operating activities1,161,131 662,570 
Cash flows from investing activities
Purchases of property and equipment(871,603)(577,829)
Proceeds from sales of property and equipment6,913 5,815 
Purchases of marketable securities(2,785,014)(5,103,983)
Proceeds from maturities of marketable securities3,188,254 3,566,895 
Proceeds from sales of marketable securities1,141,614 925,387 
Purchases of investments in privately-held companies(33,189)(3,839)
Investments in Finance Justice Fund(52,000) 
Business combinations, net of cash acquired(22,937)(34,285)
Other investing activities(8,385)(11,050)
Net cash provided by (used in) investing activities563,653 (1,232,889)
Cash flows from financing activities
Proceeds from issuance of convertible notes1,437,500 1,000,000 
Purchases of convertible note hedges(213,469) 
Proceeds from issuance of warrants concurrent with note hedges161,144  
Debt issuance costs(16,769)(14,662)
Repayment of convertible notes(954,000) 
Repurchases of common stock(664,821) 
Taxes paid related to net share settlement of equity awards(21,712)(18,344)
Payments of finance lease obligations(565)(20,573)
Proceeds from exercise of stock options2,037 454 
Proceeds from issuances of common stock under employee stock purchase plan39,531 34,395 
Net cash provided by (used in) financing activities(231,124)981,270 
Net increase in cash, cash equivalents and restricted cash1,493,660 410,951 
Foreign exchange effect on cash, cash equivalents and restricted cash(8,391)(14,854)
Cash, cash equivalents and restricted cash at beginning of period2,011,276 1,827,666 
Cash, cash equivalents and restricted cash at end of period$3,496,545 $2,223,763 
Supplemental disclosures of non-cash investing and financing activities
Common stock issued in connection with acquisitions$ $1,312 
Changes in accrued property and equipment purchases$(6,293)$103,649 
Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flows
Cash and cash equivalents$3,473,865 $2,201,073 
Restricted cash included in prepaid expenses and other current assets3,156 2,251 
Restricted cash included in other assets19,524 20,439 
Total cash, cash equivalents and restricted cash$3,496,545 $2,223,763 
The accompanying notes are an integral part of these consolidated financial statements.

10


TWITTER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Twitter, Inc. and its wholly-owned subsidiaries (collectively, “Twitter” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation.
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in management’s opinion, all adjustments of a normal, recurring nature that are necessary for the fair statement of the Company’s financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results expected for the full fiscal year or any other period.
The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Prior Period Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.
Use of Estimates
The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ materially from the Company’s estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the global impact of the COVID-19 pandemic. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be affected. The Company bases its estimates on past experience and other assumptions that the Company believes are reasonable under the circumstances, and the Company evaluates these estimates on an ongoing basis.
Recent Accounting Pronouncements
Recently adopted accounting pronouncements
In August 2020, the Financial Accounting Standards Board (FASB) issued a new accounting standard update to simplify the accounting for convertible debt and other equity-linked instruments. The new guidance simplifies the accounting for convertible instruments by eliminating the cash conversion and beneficial conversion feature models used to separately account for embedded conversion features as a component of equity. Instead, the entity will account for the convertible debt or convertible preferred stock securities as a single unit of account, unless the conversion feature requires bifurcation and recognition as derivatives. Additionally, the guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement for instruments that may be settled in cash or shares. The Company early adopted this new guidance using the modified retrospective method as of January 1, 2021. The adoption of this new guidance resulted in an increase of $254.6 million and $34.7 million to "Convertible notes, long-term" and "Convertible notes, short-term", respectively, to reflect the full principal amount of the Convertible Notes (as defined below) outstanding, net of issuance costs, a reduction of $567.5 million to additional paid-in capital, net of estimated income tax effects, to remove the equity component separately recorded for the conversion features associated with the Convertible Notes, an increase to deferred tax assets, net of $66.6 million, and a cumulative-effect adjustment of $344.8 million, net of estimated income tax effects, reducing the beginning balance of accumulated deficit as of January 1, 2021. The adoption of this new guidance reduced interest expense by $26.9 million and $83.0 million in the three and nine months ended September 30, 2021. In addition, the adoption requires the use of the if-converted method for all convertible notes in the diluted net income (loss) per share calculation and the inclusion of the effect of potential share settlement of the convertible notes, if the effect is more dilutive. There was no impact to the number of potentially dilutive shares in each of the periods presented.
With the exception of the standards discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2021, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, that are of significance or potential significance to the Company.

11


Significant Accounting Policies
There have been no material changes to the Company's significant accounting policies from its Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
Note 2. Revenue
Revenue Recognition
Revenue is recognized when the control of promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. The Company identifies its contracts with customers and all performance obligations within those contracts. The Company then determines the transaction price and allocates the transaction price to the performance obligations within the Company's contracts with customers, recognizing revenue when, or as the Company satisfies its performance obligations. While the majority of the Company's revenue transactions are based on standard business terms and conditions, the Company also enters into sales agreements with advertisers and data partners that sometimes involve multiple performance obligations and occasionally include non-standard terms or conditions.
Revenue by geography is based on the billing address of the customers. The following tables set forth revenue by services and revenue by geographic area (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue by services:
Advertising services$1,140,504 $808,449 $3,092,755 $2,052,635 
Data licensing and other143,313 127,784 417,507 374,673 
Total revenue$1,283,817 $936,233 $3,510,262 $2,427,308 
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue by geographic area:
United States$741,879 $512,637 $1,951,174 $1,345,948 
Japan159,151 132,392 480,558 371,763 
Rest of World382,787 291,204 1,078,530 709,597 
Total revenue$1,283,817 $936,233 $3,510,262 $2,427,308 
Contract Balances
The Company enters into contracts with its customers, which may give rise to contract liabilities (deferred revenue) and contract assets (unbilled revenue). The payment terms and conditions within the Company’s contracts vary by the type and location of its customer and products or services purchased, the substantial majority of which are due in less than one year. When the timing of revenue recognition differs from the timing of payments made by customers, the Company recognizes either unbilled revenue (its performance precedes the billing date) or deferred revenue (customer payment is received in advance of performance).
Unbilled Revenue (Contract Assets)
The Company presents unbilled revenue in the consolidated balance sheets within prepaid expenses and other current assets and within other assets. The Company’s contracts do not contain material financing components. The Company's unbilled revenue primarily consists of amounts that have yet to be billed under contracts with escalating fee structures. Specifically, because the Company generally recognizes revenue on a straight-line basis for data licensing arrangements with escalating fee structures, revenue recognized represents amounts to which the Company is contractually entitled; however, the revenue recognized exceeds the amounts the Company has a right to bill as of the period end, thus resulting in unbilled revenue. As of September 30, 2021, the Company recorded an immaterial amount of allowance for credit losses on unbilled revenue.

12


Deferred Revenue (Contract Liabilities)
The Company presents deferred revenue primarily within accrued and other current liabilities in the consolidated balance sheets and there is not expected to be any material non-current contract liabilities given the Company's contracting provisions. The Company's deferred revenue balance primarily consists of cash payments due in advance of satisfying its performance obligations relating to data licensing contracts and performance obligations given to customers based on their spend relating to advertising contracts, for which the Company defers, as they represent material rights. The Company recognizes deferred revenue relating to its data licensing contracts on a straight-line basis over the period in which the Company provides data. The Company recognizes deferred revenue relating to its advertising contracts based on the amount of customer spend and the relative standalone selling price of the material rights.
The following table presents contract balances (in thousands):
September 30,
2021
December 31,
2020
Unbilled revenue$41,089 $44,063 
Deferred revenue$92,871 $62,191 
The amount of revenue recognized in the three months ended September 30, 2021 that was included in the deferred revenue balance as of June 30, 2021 was $51.3 million. The amount of revenue recognized in the nine months ended September 30, 2021 that was included in the deferred revenue balance as of December 31, 2020 was $61.8 million. This revenue consists primarily of revenue recognized as a result of the utilization of bonus ads inventory earned by and material rights provided to customers in prior periods and the satisfaction of the Company’s performance obligations relating to data licensing contracts with advance cash payments or material rights.
The amount of revenue recognized from obligations satisfied (or partially satisfied) in prior periods was not material.
The decrease in the unbilled revenue balance from December 31, 2020 to September 30, 2021 was primarily attributable to differences between revenue recognized and amounts billed in the Company's data licensing arrangements with escalating fee structures due to recognizing such fees as revenue on a straight-line basis.
The increase in the deferred revenue balance from December 31, 2020 to September 30, 2021 was primarily due to cash payments received or due in advance of satisfying the Company’s performance obligations for data licensing contracts and bonus ads inventory offered to customers during the period, offset by the delivery of performance obligations and bonus ads inventory.
Remaining Performance Obligations
As of September 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations in contracts with an original expected duration exceeding one year is $578.2 million. This total amount primarily consists of long-term data licensing contracts and excludes deferred revenue related to the Company’s short-term advertising service arrangements. The Company expects to recognize this amount as revenue over the following time periods (in thousands):
Remaining Performance Obligations

Total
Remainder of 202120222023 and Thereafter
Revenue expected to be recognized on remaining performance obligations$578,182 $75,661 $211,907 $290,614 

13


Note 3. Cash, Cash Equivalents and Short-term Investments
Cash, cash equivalents and short-term investments consist of the following (in thousands):
September 30,
2021
December 31,
2020
Cash and cash equivalents:
Cash$271,236 $285,002 
Money market funds3,038,524 1,158,927 
Corporate notes, commercial paper and certificates of deposit164,105 544,500 
Total cash and cash equivalents$3,473,865 $1,988,429 
Short-term investments:
U.S. government and agency securities$450,275 $910,259 
Corporate notes, commercial paper and certificates of deposit3,466,012 4,572,394 
Marketable equity securities21,160 1,220 
Total short-term investments$3,937,447 $5,483,873 
The contractual maturities of debt securities classified as available-for-sale as of September 30, 2021 were as follows (in thousands):
September 30,
2021
Due within one year$1,798,169 
Due after one year through five years2,118,118 
Total$3,916,287 

The following tables summarize unrealized gains and losses related to available-for-sale debt securities classified as short-term investments on the Company’s consolidated balance sheets (in thousands):
September 30, 2021
Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Aggregated
Estimated
Fair Value
U.S. government and agency securities$450,361 $138 $(224)$450,275 
Corporate notes, commercial paper and certificates of deposit3,456,150 11,078 (1,216)3,466,012 
Total available-for-sale debt securities classified as short-term investments$3,906,511 $11,216 $(1,440)$3,916,287 
December 31, 2020
Gross
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Aggregated
Estimated
Fair Value
U.S. government and agency securities$909,092 $1,177 $(10)$910,259 
Corporate notes, commercial paper and certificates of deposit4,545,687 26,939 (232)4,572,394 
Total available-for-sale debt securities classified as short-term investments$5,454,779 $28,116 $(242)$5,482,653 
The gross unrealized loss on available-for-sale debt securities in a continuous loss position for 12 months or longer was not material as of September 30, 2021 and December 31, 2020.
The Company evaluates whether the unrealized loss on available-for-sale debt securities is the result of the credit worthiness of the corporate notes it held, or other non-credit-related factors such as liquidity by reviewing a number of factors such as the implied yield of the corporate note based on the market price, the nature of the invested entity's business or industry, market capitalization relative to debt, changes in credit ratings, and the market prices of the corporate notes subsequent to period end. As of September 30, 2021, the gross unrealized loss on available-for-sale debt securities was immaterial and there were no expected credit losses related to the Company's available-for-sale debt securities. The Company has determined that all unrealized losses are temporary. As of September 30, 2021, no allowance for credit losses in short-term investments was recorded.
14


Note 4. Fair Value Measurements
The Company measures its cash equivalents, short-term investments and derivative financial instruments at fair value. The Company classifies its cash equivalents, short-term investments and derivative financial instruments within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company’s Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Company’s Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily-available pricing sources for the identical underlying security that may not be actively traded.
The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 based on the three-tier fair value hierarchy (in thousands):
September 30, 2021
Level 1Level 2Total
Assets
Cash equivalents:
Money market funds$3,038,524 $ $3,038,524 
Commercial paper 164,105 164,105 
Short-term investments:
U.S. government and agency securities 450,275 450,275 
Corporate notes 2,586,251 2,586,251 
Commercial paper 593,297 593,297 
Certificates of deposit 286,464 286,464 
Marketable equity securities21,160  21,160 
Other current assets:
Foreign currency contracts 1,025 1,025 
Total$3,059,684 $4,081,417 $7,141,101 
Liabilities
Other current liabilities:
Foreign currency contracts$ $3,015 $3,015 
Total$ $3,015 $3,015 
December 31, 2020
Level 1Level 2Total
Assets
Cash equivalents:
Money market funds$1,158,927 $ $1,158,927 
Corporate notes 1,347 1,347 
Commercial paper 543,153 543,153 
Short-term investments:
U.S. government and agency securities 910,259 910,259 
Corporate notes 2,829,521 2,829,521 
Commercial paper 1,240,670 1,240,670 
Certificates of deposit 502,203 502,203 
Marketable equity securities1,220  1,220 
Other current assets:
Foreign currency contracts 5,529 5,529 
Total$1,160,147 $6,032,682 $7,192,829 
Liabilities
Other current liabilities:
Foreign currency contracts$ $1,028 $1,028 
Total$ $1,028 $1,028 


15


The following table sets forth the estimated fair value of the Company's convertible and senior notes outstanding as of September 30, 2021 based on the three-tier fair value hierarchy (in thousands):
September 30, 2021
Level 2Level 3Total
$1.15 billion in aggregate principal amount of 0.25% convertible senior notes due in 2024 (the 2024 Notes)
1,444,2851,444,285
$1.0 billion in aggregate principal amount of 0.375% convertible senior notes due in 2025 (the 2025 Notes)
1,509,6201,509,620
$1.44 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (the 2026 Notes)
1,341,763