Q2 2020 Twitter Inc Earnings Call

[music].

Good day, ladies and gentlemen, walking.

But our second quarter 2020 earnings conference call.

At this time all participants are worried that listen only mode. Later, we'll conduct a question and answer session and instructions will follow at that time I'd now like to turn the call overcame your host Cheryl Valensuela Director Investor Relations. Please go ahead.

Hi, everyone and thanks for joining our Q2 earnings conference call you have jakone it with us today.

He published a shareholder letter on our Investor Relations website, and with the FCC about an hour ago and hope everyone had a chance to read it.

Because the latter has a lot of detailed we'll keep our opening remarks brief and then dive right into your questions. You also take questions asked on Twitter. So please tweet us at at Twitter IR meeting the cash Tad T. W. TR.

During this call we will make forward looking statements, including about our business outlook in strategies.

His comments are based on our predictions and expectations as of today.

Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors and her most recent Q and upcoming 10-Q to be filed with the FCC.

Also during this call will discuss certain non-GAAP financial measures.

Reconcile those to the most directly comparable GAAP financial measures in our shareholder letter. These non-GAAP measures are not intended to be a substitute for our GAAP results.

And finally this call in its entirety is being webcast from our Investor Relations website, 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 comments for me and noted before we take your questions.

Last week was really talk week for older see Twitter repute feel terrible, but the security incident that negatively affected the people, we serve and their trust in us.

Security doesn't have an endpoint, it's a constant iteration mistakes steps ahead of advertisers.

We called behind both in our protections against social engineering over employees and restrictions on our internal tools.

And for that I apologize on behalf of our company.

We move quickly to lock down it ticks and thought to be transparent and frequent and our updates to the public.

We will continue to go above and beyond here as we continue to secure or systems and work with external firms and law enforcement.

I'll now turn to our results from the quarter.

We saw tremendous growth in audience engagement grind and be a U 286 million, a 34% year over year increase our highest reported growth rate.

Well continue to come to Twitter to learn about and participate in conversations focus on systemic racism blackledge matter cobot 19, and the reopening and re closing the economy is all around the world.

At the same time, we grew the number of topics people can follow to more than 4000.

Including public health information.

Sports music and local news, enabling you to follow cities like Saint Louis in New Orleans.

And now over 50 million people follow the topics, which we continue to believe is the best way to experience the power of Twitter with very little effort required.

Total revenue was 683 million in Q2 down 19% year over year.

Well, we continue to see headwinds from lower global advertising demand due to co good and civil unrest.

Made strong progress on our top revenue product priorities, and we saw improvement and advertiser demand over the course of the quarter.

And we passed a major milestone as we completed our AD server rebuild sport faster product development increased stability and help scale our advertising business.

We also made progress on our direct response roadmap by improving measurement prediction and or add former formats portfolio.

We acquired cross install a team of 60 people to help accelerate or truck response initiatives.

And as you all saw from our job postings and we'll see from future experiments.

The early stages of exploring other potential revenue opportunities to complement our advertising business.

Lastly, I want to thank our teams for their incredible dedication and efforts during this time.

Well its training for all of US we continue to see the strength of our service being credible potential of our business and the importance of our purpose to serve the public conversation.

We aim to build to.

The public conversation layer of the Internet and are reminded daily Weiss are critical to get it right and accessible to all that.

Great. Thanks, Jack before we get into Q and I want to highlight a few things.

Last quarter, we noted that in Q1 widespread economic disruption and a significant decrease in global AD spend as result of the pandemic led to a 27% decline in year over year as revenue and the three weeks of March in the last two weeks of March we saw a gradual moderate recovery relative to March levels throughout most of Q2.

With the exception of late May to mid June when many brands slowed or POS then in reaction to U.S. civil unrest. There was a lot happening in June but if you look at the last three weeks of the quarter, we were down 15% a significant improvement from it.

But in the last three weeks of March and demand gradually improved once brands returned after the protest subsided.

Stepping back there are real bright spots.

In markets in Asia were actually up year over year in Q2, we saw substances signs of improvement around the globe, and where even better position to deliver for advertisers when the live events and product launches that bring many people and advertisers to Twitter return I know if I'm still late Tonight I'll be watching the opening night Giants Dodges game and following along on Twitter.

Yeah.

Brands have found innovative ways to join in on the conversation and connect with their customers. Despite the pandemic for example, Playstation leverage and 89% increase in video game conversation on Twitter to build interest in awareness for the PS five they're successful takeover campaign with the brands that have mogi, a promoted trend spotlight and the first few.

Altered in Playstation being the top global trend with over 1 million mentions over two days and a four times higher engagement rate than the benchmark.

We continue to amplify conversations around live events in Q2, we held virtual watch parties for the last dance the global citizen live stream of data together at home concert for the Whrrl and numerous movie in product launches as people and partners pivoted to seek virtual connections when physical connections were not possible. These.

And valuable for audience as well as content and advertising partners. Let me also cover a couple of modeling things, where you may have questions.

You May have also noted a large noncash loss related to a valuation allowance for a deferred tax asset. This reverses a gain that we took last year, it's related to our ability to assets in the near future. We're confident that when the current operations deal to use these deferred tax assets.

Then expenses grew 5% to 807 million. This was lower than we expected I want to be clear that this is not the go forward expense growth rate you should expect as we're adapting to this.

More people and invest more to improve revenue products and grow our audience, we expect expenses in Q3.

To grow 10% or more and to grow.

Capex, but the environment remains uncertain.

With that we're ready to take your questions operator.

At this time if anyone has a question. Please press star one on your telephone keypad.

And that would be startup one on your telephone keypad. Your first question comes from Mark Mahaney from RBC. Your line is open.

Thanks, two questions. Please Jack could you talk about whether you feel like and then it whether you feel like you were investing enough I know you don't throw money at problems, but given the security and the hack issues last quarter I'm just to talk about whether the spend you have the fine.

Handle which what's obviously very important to your platform and then secondly could you just talk about the level of engagement, you're seeing that that that user growth was really impressive it's hard for us maybe externally to track, what's happening to and engagement the impression growth.

And adds this issue so just talk.

How can we tell that engagement.

As user growth thanks, a lot.

Thanks, Mark why don't I start with just how are things.

And and what that means for us.

Who invest and constant refinements specifically around relevance.

We've talked for some time about the relevance of the time.

Mine and notifications.

We're bringing more and more of that relevance to search.

To explore.

And most importantly for the future topics.

So as I mentioned in the opening remarks, Theres, a really powerful experience around calling topics on Twitter and we'd notably saw over 50 million accounts now follow topics, we have over 4000 topics at Apollo.

Including a local topics and this includes local news.

And not just opened an entirely new view of what Twitter has to offer to complement why people come to Twitter in the first place, especially during these times to find out around co bid or blackrocks matter and civil unrest happening around the world. So our goal here in terms of engagement is people may come in for one reason.

And.

We want to show them everything else Twitter has to offer and we're seeing that in the numbers as well and I think topics will continue to play a massive role.

But the investment of relevance at its core is critical and that's not just for our consumer product, but also for our advertising stack as well and specifically around how we think about map glencore I'll, let not talk about how we think about the investment.

Thanks, Jack Mark a couple of things because just add there on invest in how we want to.

Moving forward, we mentioned in the letter and in my opening remarks that we'd like to go expenses faster than we did in Q2, so that 5% reflects both decisions that we need to be thoughtful about where we invest but also a more constrained hiring environment, where we're still adjusting to hiring and onboarding people in this environment, where some of the.

Events, and things, where we'd like to be spending money.

Aren't necessarily happening so as the economy opens up but also to the extent it doesn't.

We are getting better at hiring and onboard and people in this environment. So we do want to be investing further and we're confident that when Twitter does have a more profitable business. It's on a higher revenue because we've invested to continue to grow our audience into continues improve our revenue products and not because we've cut.

More profitable business in terms of engagement I'd just add.

I think you're talking about the AD engagements, which were up 3% year over year.

And remember that add engagement number is a combination of a bunch of different types of AD formats, where the threshold to be called an engagement might be different for some it's a quick for others to view and in an environment like the one we're in today. This is a powerful reminder, that direct response tends to perform better than brand and direct response as typically have a.

Higher threshold to be an engagement and so you may show as many of them as you had in the past as many as as you had in the past, but you may have a lower AD engagement number because there are fewer brand ads and there are more map adds or website click ads in their place. That's why you saw better performance from us in some of the Asian markets.

Were not tends to do better that's why we had really successful campaigns like dragon blood for rackets in Japan, and other things that involved not the app install ads.

Thank you.

Thanks, Mark next question please.

Your next question will come from Colin Sebastian from Baird. Your line is open.

Oh, great. Good morning sounds like busy quarter in terms of the map pilot and maybe direct response overall, if you could perhaps put a finer points on.

We could expect the new out to lunch broadly in the platform if a the delayed investment impacts that timing at all and maybe more holistically, how you're thinking about the opportunity within direct.

Hi, Good response beyond the mobile App promotion.

Yeah, Thanks, Sean so.

So the the as I said in my opening remarks to put the milestone. The there we passed over was pretty critical for US we're really happy to put their work behind us as we've been talking about.

Rebuilding that server allows us specifically to experiment a lot more and thus increase our development of also you because we can launch new products get feedback from advertisers of all them very quickly refine them.

And then get them to market dependent and dependent upon that.

Including our experiments with direct response spend we have finished our first.

And we're about to embark on our second.

We worked very closely with their advertising customers to make sure that we are taking their feedback there were building something that is.

Durable and excellent in the market.

Constant iterating and developing a lot of a lot of US is is really just a function of being able to move fast.

Based on feedback on the performance we're seeing.

Response, and the and the roadmap we've been.

And focus on improving prediction and we're updating formats for advertisers.

Prediction, we ran a series of experiments with EMV card improvements Super early but we're seeing some great results. There are improving our prediction models already improving quick installs for map advertisers and also updating our formats, we launched a video carousel card and beta.

Which has two to six swipe avoid.

Images and videos and we like the.

And a greater than 30% installs impressions versus a single enrich control.

Yes.

And more importantly, our acquisition of cross installs 60 people who've been focused on direct response.

And map for some time, so we hope to really accelerate our work and the quality of or work through the.

No change here I'm going to call out work for learning from the five.

Yep.

That's all I was going to add colon, but no change in signing but also remember did not work because of all the things that Jack described that we've accomplished this quarter.

Those are great examples of the iterations involved in coming out with a new Matt products. So it's not just what.

We intend for people to see at the ended the year around the experienced that in advertise it goes through to launch a campaign. All this work underneath the hood around.

And getting better measurement to the advertisers, which is already well underway.

Great. That's helpful. Thank you.

Thanks Collyn next question please.

Yes in your next question will come from Ross Sandler Barclays. Your line is open.

Hey, Jack Thanks for the color.

New revenue products in the letter.

So I guess, if we can elaborate a little bit more on on those types of ideas.

No shortage of.

Ideas throwing around over the years.

Our outside of advertising so is that subscriptions and how do you balance keeping Twitter free for all these new you users that are coming in a while adding revenue products.

Like subscriptions any color there will be helpful. And then just.

With all these sports coming back in Threeq, you any comment on what the demand pipeline looks like relative to that 15% decline ended June thanks [noise].

Yes.

Thank you Ross.

So first on pretty much we have a really high bar a per per when we would ask consumers to pay for aspects of Twitter.

And the this is a start and we're in the very very early phases of exploring as you mentioned there have been a number of ideas over the years.

We have focus your attention on increasing revenue durability.

Meaning that we have multiple lines of revenue to pull from.

But most importantly, we want to make sure that any new line of revenue is complementary to our advertising business, we do think theres, a world where subscription.

As complementary we think there's a world where commerce. It's complementary you can imagine work around helping people manage paywalls.

As well that we believe is complementary so.

The small team is exploring our options obviously, we're hiring for those teams but.

Given the the work that we've done now and finished on.

Progression of our our roadmap on map.

And given the increased speed, we're moving out in terms of our development velocity. We're now at a place where we can explore other ideas and.

And you will likely see some tests this year.

And you know as we build anything we went to work with the people that were serving and make sure that we have a phenomenal experienced before we.

Before we sure it but right now our number one priority.

Making sure that our map roadmap is strong and moving fast and that brings us to a greater performance Road map Israel.

Yes.

Hey, Ross on your second question, let me spend a minute, though if you look at that trajectory over the course of Q2, you can imagine April looked a lot like March as the world was largely sheltering in place and the live.

[laughter] that really resonate on Twitter for people in advertisers were really put to a style.

In May we did see gradual affiliate a couple of different timeframes, there's the beginning of the month, which.

Protests in United States, when many brands chose to <unk> AWS and then there's the SEC.

And part of the month and so we gave that last three week timeframe in mentioned that it was that.

Down 15% in terms of AD revenue year over year, but even within that timeframe. We did see gradual recovery that's hard to discern straight line from a short timeframe like that when there's so many things that are moving right now in the world, but we do feel like with sports coming back with its baseball Tonight or basketball next week.

The PEO, which is already.

Moving golf, which came back already that these are terrific both audience opportunities for us as this great conversation around these things on Twitter, but also sponsorship and advertising content opportunities as the highlights for those events are terrific opportunities to bring content owners advertisers and.

People, who watch them together on Twitter. So we feel really good about in a time like this when unfortunately people can't always be live at the.

Bringing people together have been talking about what's happening and you'll see some innovative stuff from us that we're really excited about.

Next question please.

And your next question will come.

From Brian Hillock from Morgan Stanley Your line is open.

Thanks, I I've two morning, guys to that diversity I appreciate the color Ned from on what you're seeing in a the last part of June I guess the question is with the you know the difficult July and kind of the unfortunate and hack that you. If you had has that had an impact at all on the the cadence in July or is that not sort of relevant to your advertisers a differ.

And the hacking versus the advertiser growth in July and the second one in a in the no you talk about lower click through rates throughout the quarter, maybe talk to us about what what drove the click through rates lower and what do you have to really innovate on to make that go higher thanks.

So Brian first on the security issue typically when we see something like this we find that although it can be a challenging time for people who use a service that if we communicate clearly with people who are really transparent both what happened what we're doing about it and how we're working hard to make sure the.

It it can't happen again that we can work through these things with the people who use the services our content partners and with advertisers and so we intend for that to be the case here, but we're still working through all the details on the security issue and we'll just keep over the last a couple of weeks as our work has unfolded.

Your question about lower click through rates.

So this just like the AD engagements that we talked about earlier has a lot to do with a niche that response road map is so important for so many reasons and this is a really good example, as to why where you will see less brand advertising in an environment like this more direct response advertising and we're working really hard to make.

It does formats, even better than they are today to improve relevance but.

But the people are still buying math.

Our app install ads are still buying website click ads on Twitter and sometimes it by more of them and they were before and so those ads often have a higher threshold to be an engagement or to be a click.

Then the brand ads do.

And so you end up seeing similar amounts of ads, but the click through rates are at engaging rates be lower. So this is really just about that mix shifts and that's why we saw some stronger.

Performance in some of the markets that are more de our heavy like a APAC than we did in the United States Hope that helps.

That makes sense thanks, Dan.

Thanks, Brian next question please.

Your next question comes from the Lloyd Walmsley from Deutsche Bank. Your line is open.

Hi, Thanks to if I can first you always it is it possible. It all the parts out how much of the strong acceleration in M.D.A. you growth came from recent events versus the product improvements and I guess related to that are you seeing.

The new users coming and expand their use cases and continued to kind of engaging ways similar to Cobra to users in the past.

And then second one.

The shareholder letter alluded to kind of a pivot towards SMB now that the AD server rebuilds Don So wondering if you can talk about what that go to market strategy is there around sales and kind of otherwise to go. After this market you could give us a sense for how much of that has already been realized versus how much work needs to be done.

Hi, Thanks.

Great. Thanks, Lloyd I'll start on the engagement related question, and then I'll turn to Jack on the SMB opportunity. So.

First if you just think about the trajectory in the first half of the year, we saw Wi sys surge in usage in March as People's habits change as they were sheltering a place all around the world, but also as the there was news that they really wanted to learn more about around coated 19, and then if you look at Q2, we really held.

Onto that significantly increased base of people over the course of the quarter. They continue to come to Twitter to find out not just about covert 19, we had 150 million people come to our covert 19 resources as we worked hard to make sure that the right information was there in that were pointing people towards trusted sources wherever they were in the world.

And that's what we're really pleased that we're able to hold that base and if we think about what drove this a lot of it is the events and behaviors around the world, but it also was the product improvements because if we hadn't.

Work hard to improve relevance in the home timeline of the notifications of our covert 19 resources people wouldn't have continued to come back to Twitter and if we step back from the events that brought people to the service. We're confident that we still would have had a good quarter from a D.A. perspective, if it hadn't been for all of these events, but it's really hard to.

Parse these things out.

We think about all the great product work that we've talked about that has accumulated and that will continue with only 4000 topics and 50 million people. Following a topic already we feel like there's lots of work in front of us that we can do to continue to.

Grow the base of people who've been using the service when we look at engagement.

Remember, we still think that India use gonna be the best way to look at engagement, because we want to be.

A daily resource for people and so I'd point, you to that generally but when we look at other metrics and just think through things. We continue to feel good about we see from an engagement perspective, and how people are using the service who are new to it versus those who have used at less frequently but are coming back again.

And on small businesses.

We love small businesses. We think this was a huge opportunity for Buck Harman.

It definitely has a lot of dimensions to it.

As I pointed out earlier in the call and then my opening remarks.

Critical functionality that we have topics around locations for instance, obviously small businesses are more tied to locations and any signal we have around that will help them, but generally the more intuitive we make our revenue products the more self serve a we make them.

The the easier it is for them to access and participate or self serve channel for small and midsized budgets small and midsize businesses is relatively identifying and and growing advertising dollars with many SMB advertisers and we've been really encouraged by the growth we saw in Q2.

It is still pretty early but we definitely believe in this opportunity and definitely going to invest Florida.

Okay. Thank you. Thank you Chuck.

Well take our next question from Twitter.

Comes from at Pat Nerad and a question for you that is why didn't the company buyback any stock in the corner.

Okay. Thanks for the question from Twitter, when we think about share repurchase remember, we announced back in February that we would do a 2 billion dollar share repurchase over time.

And then we just said in the letter that we did not buyback any shares in Q2 every quarter. We go through process, where we look at our capital structure and we try to think analytically and dispassionately about what's the right capital structures for the company in the context of the environment in which we operate and our ambitions that our resourcing and our share price and as Weve.

And that we have that concluded that it wasn't yet the right time to begin to repurchase our shares we work closely with our board to come to these conclusions and we'll continue to look at it every quarter and we'll keep you posted on these calls as to any action that we take around repurchasing when we said that we wanted to buy back or.

Soc overtime it was important to us at the time that we gave ourselves the flexibility to do this when it was the right time for the company not just to do it.

All upfront or to do it.

And any formulate fashion.

Thanks, operator.

Operator next question please.

Your next question comes from Doug I'm from JP Morgan Your line is open.

Great. Thanks for taking the questions Ive to first I just wanted to follow up on topics you talked about 60 million accounts using them I'm. Just curious if there's any more metrics you can provide just around times.

In terms of how that could be increasing overall engagement.

And then just secondly, it's clear with the rebuild AD server the new map coming that there's a greater focus here on on revenue generation.

But can you talk about your access to data and targeting ability and how you think that compares to some other strong AD platforms out there. Thanks.

Thanks, Doug on topics, we've been really pleased with how having access to topics impacts people's ability to find what they're looking for on Twitter. When you remove the hard work for people of filing the accounts that they should follow when they care about a sports team or a company or a.

Political topic and that you, bringing all of the conversations together for then you can really improve their experience we've been experimenting with including it in the Onboarding process, we feel like this will be a big unlocked.

In the Onboarding process, when we get it right and the fact that 50 million people have already embraced this as we roll it out to more languages as we roll out the more topic as we refine the quality of the topics in that suites and the topics. We feel like there's lots of room for us to continued to improve your the same is true for lists.

Where people can school and have different timelines tied to the different.

Areas of interest that they may have.

And Jack had mentioned over a year ago now that we felt like there was years of work for us on topics and interests as we Oriental service around these things and we still feel like there's lots of room.

Part of US at the second part of your question was around how we think about the signals that we have so we mentioned in the past that we feel like the.

Opportunity provide a more personalized experience to people on Twitter is it's really an opportunity for us more than it is a risk in that maybe different than you hear about from other people and that's partly because of the approach that we've taken over time and it also like the about some of the the.

Things, where we see opportunity, where we've seen us recently take action. So some examples of the sorry in the last couple of weeks. Many of you may have seen a prompt where we ask that you are comfortable from showed you personalize as if you weren't seeing them. This is an example, where we went back to people who are.

Existing accounts and asked them for their permission to show them give them a more personalized experience. We feel like there is a lot of signal on Twitter, which we can better leverage than we do today to get people have more personalized ads and you see this when somebody is looking into a topic or events we know.

An awful lot about that much we can better leverage then we do today and some of that bares itself out when we provide better measurement to our map advertisers as Jack talked about earlier, where we find that when we get people access to third party measurement, which we did this past quarter that they tend to spend more on Twitter it than the otherwise would have and so.

So lots of opportunity there and we're going to keep working on this in the coming quarters.

Thanks.

Thanks, Jack next question please.

Yes. Your next question comes from Rich Greenfield from light <unk> partners. Your line is open.

Thanks, a couple of questions maybe to start with just from a from a big picture standpoint Jack.

I was sort of shocked when Unilever through you into the boycott along with Facebook given sort of how you led on this health issue pretty early on.

Kind of where do you think you are in terms of like do you think this is an opportunity to shift brands over and kind of take some market share from competitors like Facebook Unilever aside.

You know aided winning you how I say points, but I mean, what's the conversation like in terms of what you've done versus what peers have done from political advertising et cetera, and then two for Ned you know you. Obviously sports is coming back which is great. I think you had mentioned that there were several categories, obviously that it's sort of been problems.

Addict that hurt you I'm thinking like feature films not being released in theaters, but like what are the other missing categories are troubled categories that are still weighing on the growth as you think forward into Q3 and even into Q4 that we should be thinking about in terms of the timing of when they come back.

And those are the two major questions.

Thanks Rich.

Well first we want to make sure. We're we're operating under a principle of showed auto.

And the real is tweaks to our actions and how we demonstrated our commitment.

To protecting the service we were the first to ban political ads with principal of political read should be earned and not paid for where the first to enforce our policies on high profile tweets from world leaders and and this week.

We took on a number of accounts going to groups or campaign associated with Q and on as we found <unk> coordinated attacks.

By those by those accounts.

So we want to make sure that we are we're showing our commitment.

Of service to the public conversation by our actions and.

Advertisers are definitely taking no as we talk with direct advertisers as we talk with industry associations like M&A and WSA. We're hearing. This this resonate and people are are taking note of or differences and also at same time seeing a lot of the opportunity.

On Twitter as we advance our roadmap. So we're going to continue to focus on our principles were going on continuing to focus on taking the actions that we believe is important to maintain health.

And we hope.

That that others follow as well and that the industry sees.

So if this work is important and its overdue and it is it is meaningful.

Hey, rich on the second part of your question.

There are two sides of the coin that you described that these events that haven't been happening that could come back.

And when things paused in March and April advertisers really started to go back and think about how they wanted to show up in this more challenging time and also how they want to show up at a richer content owners started to think about when things did come back if they weren't fans understand where they were going to recreate the stadium experienced and how they were going to bring people.

Into the events in a way that could be fulfilling for.

Everybody from the fans to the players.

And people launching movies thought about how whether its tools are Hamilton, Dave we're going to get people excited through a virtual launch party.

In a way where they could still give people a good experience and monetize their really valuable content and so as people.

Pivoted and got creative we feel like we were a really big part of what they were able to do Playstation launching the P.S. fives. Another Great example, that salesforce with looked dot com and when these things happen and they have people have fewer choices.

We found its way there was a big beneficiary of that however, in an environment, where there's more subdued economic activity. It just doesn't add up to as much advertising and perhaps comes in a different pricing then you've seen another periods. When we look ahead, and we think about events coming back hopefully that'd be great for so many reasons.

Of course, but when it does happen.

We hope that we can with a larger audience with better revenue products, the and even more important part of those experiences.

But I'd I'd come back to the economic activity more because I feel like there's so much that happened this past quarter and how people adjusted to this environment. We've been an important part of that that when things come back we're going to try hard to hold on to what we gain as well as what we are really good and helping these content partners before.

That's perfect I mean, I think the question just tied to that is this whole back to school issue that snapshot called it out at sort of like a headwind or potential is your depending on kind of what happens with back to school is that just less of an issue for Twitter relative to all the other things you sports to movies and other things that affect your business.

Well that may be more tied to a certain demographics than others and when we think about Twitter and the people who come to the service it's.

Books, just like that broader economy from a demographic perspective and that means that specific events are opportunities for us, but they may not be as big of a risk because we don't see the concentration around them, whether it's back to school or something else.

So we will work hard through whatever it is that comes our way in the coming months to make sure that we're delivering for the people who use the service and for advertisers, but I don't think particular event like that weighs on estimate way on the way it may weigh on others.

Thanks Rich next question please.

Your next question comes from Eric Sheridan from your BS Your line is open.

Thank you so much maybe two questions. If I can first you know you talked a little bit about differences by region in the quarter and what did I understand if we could get a bit of color on exit rates on a regional basis, and what might be seeing business. Some parts of the world to more open down somewhat continued to be in pretty heavy restrictions that were sort of curious.

What that might mean.

For growth going out into July and then following up on Rich's question understood. The philosophical point on content, but what impact might you be seeing from the media boycott.

To the headwind in July thank you.

Hey, Eric we're here to talk about Q2, so I'll focus on what we saw in the last quarter.

And the for to the comments of Jack provided earlier when you asked about what we're seeing around advertiser behavior first on the regions I mentioned that we saw certain markets in apacs that were up year over year. This is a combination of things from the comps from last year from the particular AD campaigns that we saw.

As there were some big.

Mobile game launches in Asia, where we were really able to help advertisers I mentioned, the one for Tencent called Dragon blood in Japan as an example.

But there definitely are other ones and other markets as well and also that these are more map and website click heavy markets relative to the U.S. and so that helps our growth there as well.

These trends over the course of the quarter I think if it was.

If you looked at different regions I don't think it what surprised you is tied partly to win economies.

Gradually reopened but it's also tied to those campaigns to where.

Certain types of AD formats, we're stronger such as math as I mentioned in Asia as an example.

Great well take our last question. Please operator.

Oh Penny. Your next question will be Justin post from Bank of America. Your line is open.

Thanks for taking my question I guess I'll end with too.

I don't expect to July update, but can you talk a little bit about the social boycott are you seeing any impact from that and comp.

With advertisers and then secondly.

Really interesting stuff going on with your de our platform. How would you how would you characterize your measurement capability today versus peers and do you think you can get on the same level over time. Thank you.

Thanks, Justin.

Nothing different on what we're seeing in July.

So if you step back from that.

Activity you see from advertisers in the conversation that's going on around them right now we feel really good about the way that we continue to show up with that people use a service with advertisers the content partners with human rights groups. When we talk to them about the principles that we use to guide our work about our policies, but how are we.

Uh huh.

I used to be transparent and consistent and how we apply our policy is all over the world and to to any person. In particular, then we feel like the way we show up overtime will help them guide their decisions this which is way more important than any one month of activity that we may see your second question was about.

Our and can we.

Can we get to where we need to be from a measurement perspective, we think we can just and that's why we're working hard to come out with better formats in a better experience for advertisers, but this quarter is a great example, where you start saw a lot of under the Hood work I mentioned, the improved measurement capabilities as a great example.

Advertisers expect third party measurement.

In order to be able to weigh the success of their campaign on one platform versus another and this was a gap for us and when we provided to people as you'd expect they spend more on Twitter and so as we roll that out more broadly as we continue to improve our AD ranking and prediction models, we're confident that.

We'll be able to deliver even better for these advertisers and that that will show up overtime, but we feel like this so much great signal some of which we used today, but other things that we don't yet use around people whore. How people are using the service, but also as we get permission from them to make sure that we're using the signal they give us in the best way as possible, we think there's still.

Lots of opportunity in front of us.

Okay. Thank you.

Alright, thanks for joining US everyone. We appreciate your interest in Twitter and we look forward to speaking to you next quarter. When we report earnings for Q3 on October 29. After the market closes until then we'll see you on Twitter.

Thank you everyone. That's now conclude today's conference call you May now gets Kim.