Q1 2020 Earnings Call
[music].
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 Cheryl Melons Huh.
Director Investor Relations. Please go ahead.
Hi, everyone and thanks for joining our Q1 earnings conference call.
We have jacking, that's with us today.
Before they start I just wanted to remind everyone the format of our call.
Published a shareholder letter on our Investor Relations relations website, and with the FCC about an hour ago and hope everyone had a chance to eat it.
Because the letter has a lot of details like last quarter, we'll keep our opening remarks brief and then dive right into your question.
He also two questions asked on Twitter. So please tweet us at Atwitter IR, you think the cash tag T. W. T R.
Also during this call will make forward looking steepened those are things like our operational plans and strategies or expectations regarding the impact of the Kobe team pandemic on our business and our expectations regarding future expenses and the timing of those expenses.
Our actual results could differ materially from those contemplated by our forward looking statement for a number of reason, including risks related to the impact of could be 19 on market condition and on our business.
And you should not consider our reported results as an indication of future performance.
You're making these forward looking statements based on information available to us as of today and we disclaim any duty to update them later and that's required by law.
Please take a look at our filings with the FCC, especially in the risk factor section in our 10-Q for the first quarter of 2020, which will be subsequently filed.
And in our most recent 10-K for a discussion of the factors that could cause our results to differ.
Also during this call will discuss certain non-GAAP financial measure you reconcile those to the most directly comparable GAAP financial measures in our shareholder letter <unk>.
These non-GAAP measures are not intended to be a substitute for GAAP result.
And finally this call in its entirety is being webcast from our Investor Relations website, an audio replay will be available on Twitter and on our website in a few hours.
And with that I'd like to turn it over to John.
Good morning, everyone and thank you for joining us.
A few thoughts for me in mid before we take your questions.
On a scoping thinking older folks around the world who are currently on the front lines and her battle against Kogan Nike.
We're not be able to your work without the incredible sacrifices, you're making to do yours.
Everyone who's treating us feeling us feeding us caring for us and building for us.
We see you and we appreciate it thank you.
We're here to serve the public conversation because we believe it helps the world learn faster.
So common problem and shows us that we're all in this together.
Kobin 19 has proven miss.
For the first time in history.
Her world is focused on learning how to solve one global problem.
People are turning to Twitter to stay informed the share solutions and to ask for help and support one another.
And we see it in the numbers.
Average MD, you grew 24% year over year, which brings us to a total of 166 million.
Our highest reported growth rate today.
Our consistent focus on increasing relevance and making conversation more accessible and powerful continues to be right.
The real power of Twitter as unlock though through list.
Interest, however, and we remain confident in our work here will enable entirely new forms of participation for people all over the world.
There's been a rapid and significant decrease in global advertising spend due to colder 19, which is also reflected in our numbers.
Total revenue was 808 million in Q1 up 3% year over year.
As we've talked about on these calls before our goal is to increase or revenue durability by building a world class performance as product.
Starting with Matt.
In light of the environment and the increasing.
And the increasing importance of our revenue product work. We've now made this are number one priority. So we can deliver the product as quickly as possible and accelerate our direct response roadmap.
Development velocity and agility continues to be a focus for engineering team with a goal of doubling the rate at which were able to ship features to our customers.
Hoping they can also accelerated our efforts to be centralize our workforce as we've all been working from home since the first week of March.
We've seen no significant decrease in productivity, which gives us a lot of optionality for the future.
I have never been more sure the value of Twitter brings to people around the world.
Books trusted everyday to carry some in the most important questions ideas commentary and critiques in the world.
We acknowledge and appreciate our role in making this incredibly powerful service accessible and directly valuable to everyone.
Nothing else like us.
Thank you and overnight.
Great. Thanks, Jack before we get into Q1 day I want to highlight a few things which are in the letter, but not mentioning at the outset or the call.
We had a strong start to the quarter that was impacted by widespread economic disruption related to cope with 19 in March leading to a significant decrease in global advertising spend.
As we noted in the letter AD revenue from March 11th to March 30, Onest declined approximately 27% year over year.
Jack mentioned, our increased focus on D.R., an improved math product and more direct response AD formats would increase our addressable market with more exposure to advertising demand that may be more resilient through an economic downturn, while building on our strengths and helping brands wants something new and connect with what's happening.
I'm also pleased to share that our AD server rebuild should be complete by the end of Q2.
We've moved quickly to consider our expenses and slow our hiring reps.
We're continuing to grow our engineering product design research and trust and safety teens, well largely holding head count at current levels and other functions as you continue to monitor the broader environment and our own operations.
Lower headcount growth decisions, we've made to reduce non labor costs and savings from business activity, such as travel and customer events that have been significantly curtailed combined with future decisions. We make as this very dynamic environment continues to unfold are expected to result in full year 2020 total expense growth that will be considerably.
Less than the 20% we expected at the beginning of the year.
We currently expect you to expenses to be meaningfully below the year over year growth, we observed in Q1 likely closer to a year over year percentage growth rate in the low teens.
As people turn to brands institutions and leaders for answers. We've also seen brands turn to Twitter as they've adapted their advertising to respect the current environment, we've seen brands like Verizon and Salesforce leverage our lybrand studio to raise awareness about the live streaming events, while Hyundai utilized video website cards to drive awareness.
Their job loss protection program that offers deferred payments for new or current owners.
We supported Jami through our house team and constant creators to launch the enlighten phone series with the entire marketing execution done remotely and broadcast through live stream on Twitter.
Coupled with a record India. Your growth. These handful of examples demonstrate why we're so passionate about continuing to invest that are most impactful work we remain confident in a significant long term growth opportunity for Twitter.
With that we're ready to take your questions operator.
Thank you ladies and gentlemen, if you have a question at this time. Please press Star then one on your Touchtone phone.
Question has been answered or you wish to remove yourself from the Q. Please press the pound Keith.
Our first question comes from Cowen fashion from Baird. Please go ahead. Your line is open.
Hi, Thanks, very much and good morning.
First off net was hoping you could maybe give us a bit of that up a sense says two trends suppose March and April we've heard from us some other platforms about more of a stabilization and trends.
And then.
Probably on the topic, a map and direct response.
Could you, perhaps provide a framework or timeline in terms of how much additional work is needed to finish up the changes to map, but perhaps more importantly, the process required to.
Other direct response formats and how much I activity on Twitter is users who are in market for products and services. If there's any possible way to frame that thank you very much.
Hey, Thanks, Colin good questions first when we think about what it's been like to navigate through this unprecedented time I think the best timeframe to point you to would be that March 11th to March 30, Onest timeframe that gives you a good sense for what it's been like for US and I was just also point out in such a dynamic environment for you or.
For us to try to discern trends based on the tremendous change and advertiser behavior as the economy continues to evolve but may not be prudent. So I just point you back to that March 11 to March 31 timeframe I should point out within that.
The U.S. was impacted a bit more and that other parts of the world, especially places in Asia, where things had been impacted earlier by cobot 19 that they were less bad than they had been earlier in the quarter. When you look at the March timeframe.
The second part of your question was around mapping and de are there are no changes to our thinking there where we'll work hard to accelerate our long term road map as Jack mentioned Nicky revenue product are number one priority. Our map work will continue throughout this year, we actually have recently launched a pilot where we have.
New parts of new methods in the hands of advertisers, where they can work on launching a campaign.
With new formats and.
We'll get some good feedback from that and we hope that we can build upon that over the course of this year remember, we said that the impact from our map work ought to be felt gradually overtime as we test and roll things out and then we see map advertisers models adjust remember this is a multi tens of billions of dollars market to average.
Hi mobile games.
You know services.
Food delivery services and other things and we believe that those models will be able to adjust quickly once we're able to rollout a product to people that is more performance into one that we've got that today. So we'll keep you updated on that as things as things unfold.
Great next question please.
Our next question comes online Doug and that's.
P. Morgan. Please go ahead your line is open.
Great. Thanks for taking my question, maybe one for exactly I'm from Ed.
Jack you see five quarters now the children you use your growth, including from which you get in one if you just talk about some of that you're doing to paying users cope with the election cycle.
And then I'm going back for the you'd have product.
Nick can you just talk a little bit more about timing do you think mapping actually helpful positive impact in 2020.
And then you look longer term.
Do you think Matt can help you get to a majority based performance and to your spending thanks.
Thanks, Doug.
But as I said nine within remarks.
Our focus on relevance.
And are focused on making conversation much more accessible and more powerful continues to pay off.
So the relevance work that we're doing with them the timeline.
Has been critical.
And we're making really great strides and making on a whole lot more powerful a whole lot more relevant as people come back from the service.
And ER and I think the biggest thing that will shift those from people who come to Twitter because they want to know what's happening and stay informed around corporate 19.
Is our work on interest topics and list in particular to me. This is like the biggest unlock for what mix someone really see the potential of of Twitter.
It just hasn't been not accessible in the past the people.
People have had to find and follow all the accounts related to a particular topic or an interest.
We should be doing that work for them as socket also gives us much much stronger signal to our revenue products.
Sure business. So a lot of their work there were doing right now on that is to make list a whole lot more powerful and to make following topics a lot easier.
And as we are fats that experience and we make a great experience for people to go into its an obvious candidates support righted onboarding.
So that you may come in to learn about what's happening with covenant team, but you also see all the interest based on the signals. We have about you whether it be where you are.
Or treats you like or engage with.
So you can probably as topics directly we did weaken them suggest tweets and accounts for you. So our strategy remains a true and we're looking at everything that's going on in the service today looking for any signs of new emerging patterns, but they all come back to these.
Interest in topics that we think are really durable and also really important to a complete.
Hey, Doug on the second part of your question.
From a timing perspective, the nap work that is underway today ought to have gradual impact as we are able to rollout this new product and so we'll keep you updated isn't a full to remember that in fact ought to be felt gradually as we've said on this call and overtime, but let me just step back more broadly reminds you that few things about direct response the first is.
This is an important.
Area for us already today, whether it's through web site clicks or app download ads.
This is something that's been important to us for a long time and some are we've done a good job with video website cards and video App cards in the past, but we know we can do better for advertisers not just with App installs, but moving all the way down the funnel overtime and so that roadmap is something that we'll work hard to accelerate here to make sure that we can help advertised.
This launch new products and services and connect with what's happening not just from a grand and awareness perspective, but all the way down the advertising funnel remember we said in the past that there's an awful lot of signal that we have today from how people use the service as Jack mentioned some of the of the timeline related or tweets related.
A benefit to that just now but it also really helps on the advertising side and we think that personalization continues to be more of an opportunity for us, but then a risk as we look ahead and think about how we can serve more direct response as the people over time.
Thank you.
Next question please.
Our next question comes on line of Ross Sandler Barclays. Please go ahead. Your line is open.
Hey, guys.
I know, it's hard to parse out at this point, but.
You can use us.
That.
March a brand advertising decline how much of the impact was from cancellations or delays of these major sports events or other kind of big public events that brand advertising would try to associated with and the flip side of that is a sports started happening this fall.
Do you expect brand advertising on Twitter to to pick up in tandem with that and how are you kind of retooling the sales process to adapt to this current environment. If most of the conversation on Twitter is around covert 19, which makes sense right now.
Is there a way to kinda tweak the the AD AD sales approach to take advantage of of the situation from like a messaging standpoint or anything like that.
A lot.
Sure. Thanks, Ross first let me start where you.
Ended there, although a lot of people are coming to Twitter around covert 19 to learn more and we're working hard to point them to a trusted source is be at the CDC or the government agency and they're part of the world to verify trusted source is to make sure that were removing this information as quickly as we can there's so much.
More happening on Twitter right now, whether it's the conversation around the last dance and allowing people to feel like they're in the room with their friends and colleagues who they can't be in the room with today, the NFL draft or other things in other parts of the world that brings people together, where they're looking for that connection and conversation and so there's.
A ton of other stuff happening on Twitter and we continue to see advertisers want to launch new products and services, whether it that down. The example, I gave earlier or tablets that had been launched and new video services that had been launched recently or connecting with what's happening whether that's a global concert that brings everybody to their sofa to watch and Pepsi.
He is advertising around it or advertisers, who we have helped pivot their campaigns where before into it may have been advertising quickbooks, but now they're advertising. There go fund me to help small businesses.
Thing advertisers because it has been a big part of the work of our commercial team and were so proud of all the efforts that they've done on video to quickly adapt and out their customers. When we look ahead to events that have been postponed or canceled and things that will happen down the road, it's hard to really parse out from those things.
How things will play out both because of the broader economic environment and because there's a lot that has to happen between now and then but the work that we're doing to continue to help this increased audience and the people who will be nudists, whether in the future. The work that we're doing to improve our AD formats can only help us more down the road with these events that that come up whether it's the old.
Picks next year or some of the other things that will come back in the fall this year.
Next question please.
Our next question comes from the line of Rich Greenfield Chen. Please go ahead. Your line is open.
Hi, Thanks for taking the questions I guess, just I want to keep hammering on this map issue.
Ned could you just kind of give us a little bit more detail of like compared to new map to old math, you said, you've already got a few pilots out in the marketplace like what do the pilots look like.
Do they look different is it just the targeting is different like give us some sense of what new versus old map looks like and then I've got a follow up.
Sure. Thanks, rich it fall into a few different buckets first is if you're the advertiser and you launching a campaign you have to do the launch or campaign in minutes. It has to be really easy it has to be similar to what you might experience somewhere else and we've got work to do there. That's part of what we pilot with people. The second is we need to make sure that we have deal.
The compelling format and that we don't have too many choices for people and that the choices that they give them or things that we've seen really resonate and work on Twitter.
The third is things that they may not see but things that we're doing the background to make sure that we're continuing to improve relevance you see relevance improvement. This quarter were quickly with continued to improve where AD engagements were up 25%, but we know we can do even better in the future both leveraging the signal that we have today, helping people.
And and appreciate the benefits of a more personalized experience on the service all those things go into the suit of improving map and helping us rollout a better product over time and we're excited to learn more from the pilot you've got going on Dallas and to keep you up that as we go.
How many brands are not pilot.
We haven't really said, which I think you'd probably even if we did though I'm not sure you you.
Green too much from at the point is that we go to our trusted partners. We let them try something their feedback is critically important to us understanding what we can do to make these experiences that are for them.
And overtime, we'll just continue to.
To test and learn get feedback from customers and adapt to it.
And then just on the event side so much of Twitter is tied to events.
Big events, whether its and see tournament's or you know obviously that was cancelled but we have a lot of instead of just gotten pushed a lot of them. You know you look at the movie schedule theoretically for 2021 and I'm just curious like how much of the revenue shortfall do you think is just delayed revenue versus revenue that meaning you're going to get it in 2021.
Versus revenue that's somewhat lost seems like the tournament, which was cancelled.
Rich I think it's hard to break it out I appreciate why you'd you'd you would endeavor to try but if you think about a growing audience. If you think about improved AD formats. If you think about.
What the economic environment might be like a year from now relative to today. Those are just a handful of the variables some that might go in our favor others that might not that could affect.
Something that you removed from one period and move into another one so we know the work that we've got to do regardless of the economic environment that we find ourselves into regardless of when these events happen and we'll continue to focus on improving those revenue products. So we can deliver even better for advertisers to make sure that the people who come to Twitter have an even better experience.
When they come to the to the service next year around the Olympics and they May have had this year filing the things, they're looking for having the timelines be even more relevant than they are today, giving them the appropriate notifications and so on.
That's great next question please.
Our next question comes on line of John Blackledge. Please go ahead. Your line is open.
Great. Thank you.
Great user growth again this quarter, how should we think about user growth in Twoq, you and through the rest of the year do you think you pulled forward some of the growth I'm just trying to figure out the shape of the user adds over the course of the year and then second question for for Jack Just you know what the bulk of any of the employees working from home.
Curious your thoughts about over the intermediate and longer term how that might change.
This is kind of pre coded.
Yes.
Hey, John just on the first part of your question. There's still there 6 billion people who lives in parts of the World, where Twitter is available who don't use. It every day. The we think can get benefit out of the service and all the topics and events that you can be in a conversation around or learn about on Twitter.
So when we think about pulling forward, that's not really a term that that we consider having said that if we look at the way. The March quarter played out we did have deal you strength in January and February tied to the typical seasonality that we see and the ongoing product improvements that we've delivered and then there really was a surge in March.
People flocked to the service to learn more about covert 19 as their behavior is changing they came to Twitter to learn more about what was happening in a world and what people were talking about that did level off towards the end of March.
And so we think about the opportunities is continuing to add people who.
Our new to Twitter.
And I hope that make the service part of their daily lives and to continue to help those people who have recently found this or haven't used a service is frequently in the past.
And help them make Twitter a part of the daily lives, we still see lots of opportunity in both of those buckets.
And John on the on the work from home, we were pretty early and trend bidding folks work from home.
One of the started the first week of March Chris and we had been talking about decentralization for quite some time in this is due to our workforce.
So we wanted to make sure that we had a lot of Optionality for we founded a great engineer somewhere around the world that we could.
As a company that could help them be I'm extremely creative and productive wherever they happen to be we were able to flip the switch it very quickly and we saw no significant change.
Productivity as people started working from home every single day, so as we emerge out of the stay at home orders I think it gives us a lot more optionality because our employees a lot more optionality Oliver infrastructure.
Has been tuned for this and we have a practice now within the company than others extremely effective.
So it means that we have a lot more options to hire people wherever they happen to be wherever they happen to feel there they're most credit.
Thanks.
Hi.
Thank you John and we'll take our our next question from Twitter. It comes from Dr. D. At Neal Dark Romance. Next question is can you talk more about Twitter is competition and how Twitter in defending its market share.
Thank you for the question so I think.
Twitter is so unique and so different from anything else out there and really what it comes down to is our focus on public conversation.
And what what has what does block this in the past.
People just understanding the power of the service and the power of the service is really incredible.
One of things that we've identified as lacking is this work that I mentioned earlier that people have to do to find and follow all the accounts that are related to their particular interest. So that's why interesting topics are such a high priority for us.
We also see the power tutor really being the conversation being able to follow conversation find conversations but also participate in them.
And in the past they were just far too and accessible for two buried.
And ER and not something that could easily kras and get into so a lot of our work recently to make conversations more organized.
I'm much more intuitive is really paying off and finally, there theres a lot of work around making sure people feel comfortable.
In expressing themselves and Twitter and and here I would point you to fleets. This is a opportunity for people to.
Share something that disappears and 24 hours Theres no likes Theres no retreats, there's no replies.
And what the reason we built this is because it helps people who don't necessarily have something to save the world that do have something say to a group of friends or followers and don't necessarily want.
That content that we are to be around forever, they're just off the moment thoughts.
And something that they want to express but should disappear. So we launched this in Brazil, we're seeing incredible feedback both in terms of usage and also people telling us how much you like it.
And we hope to roll that out as quickly as possible all around the world.
Great next question please.
Our next question comes on line of Lloyd Wamsley <unk>.
Thank you. Please go ahead your line is open.
Thanks.
Two going back to Matt.
I guess the first one would just be.
Steve you talked about kind of the longer term of.
Past challenges at the format.
Kind of ads.
Sure.
And deployments that broad portion of the unique user base will engage in this format.
If you get the targeting right any color you could share there would be.
[music].
Great. Thanks, Lloyd first on where those work sits around map.
We really feel like the bulk of the workers on our and advertisers want a performance product, it's easy to use where they can.
Onto campaign quickly and where they can have clear attribution for where success comes from and what they ought to pay for it and so.
We really feel like a lot of the workers on our end as we roll out that work through testing and adapting and improving it.
We believe that the models at the average.
Yes.
Ulti tens of billions of dollar growing market for App install ads.
Your second part of your question was around some of the issues that we've talked about in the past around our revenue products. Let me remind you on the AD server work that we began talking about in 2019 that work ought to be completed in Q2.
We were pleased that the record Super Bowl traffic actually ran in many ways on the new AD server technology and not.
Sorry about the progress there and what that will allow us to do overtime and we think about how people use Twitter we feel like there are tremendous direct response opportunities beyond the ones.
That we benefit from today, whether its website clicks or app downloads and it so.
So us right now to do the work that come up with these great formats and to leverage the signal that we already have from how people use a service to help them find even more compelling ads than we do today.
Great. Okay. Thank you.
Thanks.
Our next question comes from the line of Ryan Noah.
I can Stanley. Please go ahead your line is open.
Thanks for taking my questions.
I have to now just to pick up.
That might have improved certain verticals or geographies or anything.
Trends, there are improving and on the upward from those late March trend into April just tickets are better understand what's going on the AD markets with you guys and then secondly on the I'm on the Opex for the year how much is.
This opex reduction for the year is sort of a temporary pullback as opposed to structural changes in opportunities you for increased efficiency in the opex over the long term. Thanks.
Hey, Thanks, Brian So first when we look at what we saw from March 11th to the 31, which I think is the best timeframe to look out if you want to think about what it's been like breast and navigate this very dynamic another person environment I think you'd see.
A few things at play, which remind you that some of the real strengths of our business. The first is we are a big beneficiary of events, both our customers events, when they're launching a new product or service and event that bring people to the service to learn about them and to be involved in a public conversation around them and so I think we were impacted.
By both of those kinds of events being delayed or canceled in some cases secondly.
If you look at the geographies. The U.S. was impacted more in that timeframe then Asia as an example, Asia saw more impact earlier in the quarter and as things and Nick economies. There began to come back a little bit we did see some impact.
From that in that March 11th to Marchthirty, one timeframe when we look at the verticals that advertise on Twitter most.
I remember a lot of these our consumer.
Package, good check and Teleco media financial service impactful.
So we tend to have less advertising from things like travel or considered purchases than some others may and as we work hard to improve our direct response offerings. We think that will help us even more with the scoop of advertisers as in a more constrained economic environment, they really want to be able to measure everything they're doing a sign attribute.
Turning to at least that are AD formats that are further down the.
Well, we think will.
Hi, Research and trust and safety.
And.
There are a lot of other areas of the company, where we will hold head count relatively flat.
Also we've cut some of the non labor spend growth.
Things like travel and event that just can't happen in the sense.
Environment than other things that are real decisions that we.
We've made sure priority.
Ties and make sure that every dollar is most appropriately spec.
The Billy and such a dynamic environment assess exactly how things play out over the rest of year, we want to continue to be nimble and adapt to the environment while staying.
Very thoughtful of the long term opportunity that we see to continue to improve the product to being even more people to the service and continue to continue.
To improve our revenue.
Hey products that are more advertisers so as we balance those we'll just have to talk more about it over the course of the year.
Yes.
Yes.
Thanks, Brian next question please.
Our next question comes from the line of Justin Post of Bank of America. Please go ahead. Your line is open.
Great a couple of questions first you talked about the events on the revenue side, but how will that affect usage as we look at April and May.
The news flow able to offset that it.
And how are you thinking about that over the summer on the user side and then secondly, as you get into deal.
With Facebook and Google for DHR revenues, and maybe talk about some of your competitive advantages as a platform in that area. Thank you.
Thanks, Justin first I think it's too.
Really for us too.
Through in March as people flocked to the service to learn more about cover 19 or in any other environment.
So I wouldn't want to predict how that plays out from on events perspective.
Other because it's hard to predict when the events will happen and it's hard to predict how people behavior and then that we'll just keep improving the service. So that we can help as many of them as possible on the D.R. side.
These are.
Such big advertising markets. If you think about VR is the largest piece of the digital ads market that is faster growing and the brand side. There's there's so many dollars at play that we tend to think a lot less about competing with specific platforms and a lot more about the reasons the advertisers use Twitter they come to launch a new product or service.
Whether its ride sharing in a different environment or food delivery in this one.
And they come to connect with what's happening whether that's something like the last damaging people.
To Twitter, even in a shelter in place environment or other events. It can't happen in the environment like the when we find ourselves in that today. So we feel like there is still.
A tremendous opportunity for us to do more for advertisers with more performing easier to launch AD formats and campaigns on the service.
Okay. Thank you.
Next question please.
Our next question comes from the line of Eric Sheridan. Please.
Please go ahead your line is open.
Yes, hi, Thank you for taking the question, maybe one big picture one for Jack.
Okay, and then maybe just referencing the recent past what else do you want Jeff we put a lot of leaders impact.
Okay about all the way the organizations are evolving for what they see in the macroeconomic environment and health care.
Rate over the next 612 18 months against your wells in view of that landscape and then Ed just going back you know you communicated to the market on March 23rd quarter would be down year on year and you ended the quarter go producing the power.
The revenue growth number.
He said should give us of what you knew in mid March to change by the end of March so.
Maybe that might be read of what might have played out.
The end of March were just understanding a little bit about communication come March 23rd to now thanks, So much guys.
Yes, so I mean, we're we're seeing so much variability around the world in terms of nations coming online and offline again.
Lifting the looked at the stay at home orders and then on.
Reengaging on because they find new cases so.
Okay.
Good day, everyone has where they need to build wherever they happen to be.
And a lot of are a lot of our focus.
And really turns to our doublet development velocity in that and agility.
On a double the rate at which we are able to ship new features and new products.
People all around the world.
And now work is progressing very quickly so we're really excited too.
Be able to do this independent of the macro environment around us.
Hey, Eric on the second part of your question when we withdrew guidance in late March we thought that we may see some.
Okay continuation of that.
Deteriorating environment and things remained relatively steady.
We or others NAV expected, but directionally things remain relatively consistent in that timeframe and we thought that there may have actually continued to deteriorate win.
We provided that update too.
Two things.
Back in late March.
Okay. Thanks, so much guys.
Great operator actually already have Henkel my last question.
Thank you. Our last question comes from the line of she's carry of Goldman Sachs. Please go ahead. Your line is open.
Great. Thanks.
Yes, as you as a obviously as you think about sort of the prioritization of revenue generating products products here youre going into a.
Continuing to go into a unit material where.
Users are relying on onshore there from a product perspective.
More than ever.
So thats likely only going to increase as we get into.
Well into the into the hall.
Okay.
Im curious how.
You expect this focus to impact the work that you're doing.
In products impact gains.
Engagement Empire.
Impacting.
The work that you've been doing around the ability to follow that.
Thanks.
And sort of future.
Sure.
Our biggest our biggest sounds right now so to make sure that the folks that are coming to the service for a couple of 19 related information.
All the other topics inventory.
On the service and can find something very very quickly to to engage with.
So our sir.
Strategy, we believe remains the right one.
We will need to make sure that we're putting.
As a engage all over the service and particularly in Onboarding.
A lot of our work around events has given us or.
Number of learnings and how to make topics and interest is much much stronger.
And we're starting to roll out some of those features those features right now.
We don't believe that.
There is a significant shift them in what we're doing.
We just want to we just want to make sure that we are able to ship.
As much faster.
And.
We're paying attention to some of the new.
For immersion behavior that we're seeing on the on the services well, we're seeing a lot of watch parties were seeing a lot.
So how we organize all the tweets and all the content and that'd be topic in interest focused and forward.
Instead of the typical model having to do all the work to find and follow those accounts. So that that work remains the most important and were moving very very fast.
Great. Thank you.
Okay. Thank you.
I want to thank everybody for joining us. We appreciate your interest in Twitter, we look forward to speaking with you next quarter. When we report earnings for Q2 on July 20, Threerd before the market opens until then we'll see you onto.
Splitter.
Ladies and gentlemen, thanks for participating in today's program. This concludes.
Hi.
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