Q1 2021 Twitter Inc Earnings Call
Our GAAP results.
And finally this call in its entirety is being webcast from our Investor Relations website, and an audio replay will be available on Twitter and on our website in a few hours.
And with that I'd like to turn it over to Jack.
Thanks, Chris Hello, everyone and thank you for joining us we.
We had a great start to the year total revenue reached 1.04 billion with AD revenue growing 32% and accelerating year over year growth and map revenue.
Average monetize about EBITDA reached 199 million up 20% year over year.
We remain focused on our on the three goals, we shared at our analyst day, increasing development velocity and significantly growing MDU and revenue we made progress on each when Q1.
On the products, we now offer more than 7000 topics in nature across nine languages people can pick when they first sign up or on the main interface from timeline as.
This continues to be the fastest and best way to get value out of Twitter immediately.
We're also moving faster to make taking on talking on Twitter better with Twitter spaces are audio conversations products being our newest position with <unk>.
We ended the feature that Android and we're shipping weekly iOS updates with a focus on getting those smart controls and moderation tools as well as better discovery and reliability on.
Our revenue products, we're moving faster than ever before building out a suite of products that positively reinforce one another.
Map is the first step on marketing revenue opportunities in direct response with large and small businesses alike.
In Q1, we launched our rebuilt app install and web site click click offerings.
Improve the viewer experience for ads across Twitter amplified and improve brand safety with the launch of conversation controls for advertisers.
We also launched curated categories, a brand safe way for advertisers to run pre roll ads exclusively against premium video content.
We're focused on delivering the roadmap we laid out in February and it's been great individuals and companies are using our new products in our features.
I am excited about our progress and what's next.
Net.
Thanks Jack.
Jack mentioned Q1 was a solid start to the year total revenue reached $1 4 billion up 28% year over year total AD revenue grew 32% year over year, driven by strong brand advertising in March and accelerating year over year growth in Mack.
<unk> grew 20% in line with the outlook that we shared in February overall, we're benefiting from a growing audience better AD formats improved relevance and strong secular trends.
Before we turn to your questions I'd like to touch on three topics first like our performance hiring is off to a great start we're attracting more great people to Twitter than ever before and investing in our highest priorities to deliver on our long term goals across consumer product revenue product and platform. We now expect headcount growth to more closely mirror expense.
Growth from 2021, with head count and total costs and expenses growing 25% or more on a year over year basis in 2021 ramping in absolute dollars over the course of the year. There are no changes to our thinking on revenue. We expect total revenue to grow faster than expenses in 2021, assuming the global pandemic continues to improve.
And we see modest impacts from the rollout of changes associated with <unk>.
Second on MDA you there are no changes here either.
Mind, you that we are lapping unusual comps given the significant pandemic related surge that we saw last year.
As a result, we continue to expect MDA growth rates to be in the low double digits on a year over year basis in Q2, three and four with the low point likely in Q2.
Finally on ATT, we've been actively preparing for the changes that Apple just released as part of iOS $14 five.
Our outlook for Q2 in 2021 assumes a modest impact from the rollout of changes associated with iOS $14 five across owned and operated ads and low pup.
Long term, we're confident that our brand advertising strength and better performance products position us well to help advertisers achieve their goals. There are no changes to our long term plans with laser focus on executing against the strategy that we laid out at the analyst day, and we look forward to updating you on our progress along the way with that let's move to Q&A.
Operator.
And ladies and gentlemen, if you would like to ask question Chris tariff on.
<unk> on your telephone and Danny if you would like to ask a question press star one on your telephone.
Loss from just a moment to compile the Q&A button.
For our first question, we have some on net from Jpmorgan your.
Your line is open.
Great. Thanks, so much.
Two questions first is over the last week or so we see every major online AD platform show accelerating growth in <unk> and some of them quite meaningfully off from very large basis. So just curious why you think you didn't see a similar dynamic in the quarter and then secondly, just on the SK AD network, you talked about how that.
It expands your map audience by around 30 per Se I was just hoping you could explain some of the dynamics there a little bit more thank you.
Great. Thanks, Doug So first let's talk a little about Q1, and how things played out remember our business on the owned and operated side is about 85% brand and 15% direct response on the brand side.
Advertisers typically come back from holidays and plan, how they want to show up all year and that means that we often get off to a slower start on the brand side that was likely exacerbated by two factors one is the debt to capital right Andy.
Lead up to it aftermath of the inauguration in the United States, those likely slowed things down a bit but you also had events that typically show up earlier in the quarter.
Like the Grammys or the Oscars either happened later in the quarter or get pushed out to Q2, and so that meant that there were fewer events against which for our brands to show up while they were still mapping out plans that they typically would have mapped out earlier in the year. So brands got off to a slower start January and February were slower but March was strong.
<unk>.
On the direct response side that was strong all quarter and the best evidence of that is to look at map.
With App installs are an important part of our direct response offering remember we came out with new versions of our website clicks format and of map in early February and we saw accelerating revenue growth from that 50% debt. We shared for Q4 from App in Q1, I'll give you a fun fact, we saw.
The bedding crypto and investing space, where there's great conversation on Twitter those map advertisers, who advertise into those areas to add people download their apps for a crypto or investing or betting they <unk> their spend in Q1 relative to what they spent last year demonstrating how we are benefiting.
Getting from one of the strong secular trends and we have a large and growing audience and an active conversation around a topic and a better AD format that delivers relevant ads to people. So those are some of the dynamics that we saw in Q1, if you play those forward into Q2.
If that brand strength that we saw in March continues that likely points us towards the higher end of the range that we provided and that map strength that we saw we think that based on a secular trends and the hard work that we've done that those can continue throughout the year, although the comps do vary at different points in the year.
Sorry.
Sure.
Sure sorry, Doug.
So when you implement the FDA AD network and you can provide advertisers with aggregated data on how their campaigns perform.
Because of the way that we were leveraging the signal that we were getting from iOS.
We just now have access to over 30% more people to show map ads. So these people were seeing ads before but we werent able to target them appropriately to show them on map ads and then report back to advertisers in a way that gave us confidence that we could give them good outcomes before the way that we can now. This is just one example of the work that.
We are doing to remediate any impact that we feel from the changes in $2014. Five we think this when we step back from it likely has more impact on Dr than it does on brand and we think it likely levels. The playing field in terms of signal that people have and we've layered modest impact from.
ATT into the guidance that we provided for Q2.
That's great. Thank you for the color.
Yes.
Our next question, we have Justin post from Bank of America, Justin Your line is open.
Great.
One follow up on the on the last question.
So U S revenue was down sequentially more than last year was March, especially tough in the U S and I guess to follow up did you say your <unk> guidance assumes that comes back or remains at a slow pace and then second second question as you get into the second half do you think that map product.
The percentage of revenues will start moving towards from that product as we get into the second half. Thank you.
Thanks, Justin So first remember COVID-19 had a varied impacts on different parts of the world at different times of the year and so since the COVID-19 impact was greater in Asia and in Europe earlier in the quarter, we had easier comps internationally than we did in the United States earlier in the <unk>.
Order and that meant that on a year over year basis, those reasons that tended to perform better which pulls up that international growth relative to what you saw on the U S that coupled with what I described earlier.
Doug's question around.
The brand Dr mix, and how brand got off to a slower start than it typically does that finished strong in March I think that ought to explain the U S.
Growth that you were asking about.
On my comment about the guidance was if you carry forward that strength that we saw in March that that would point you towards the higher end of the range of guidance that we provided relative to the the slowness that we saw on January and February for the reasons that I described earlier you asked on map in the second half of the year.
On a year over year basis, you may see the comps get trickier for Matt just because we start to lap on we were showing real improvement in the second half of last year at the same time on an absolute basis, we feel like we're now able to deliver ongoing improvement for map, where we're reaching more advertisers where there are more.
Our high cost per install advertisers, who have gained confidence that map can perform for them.
Bedding and investing in crypto spaces are really good examples of that but there is certainly not the only ones and so we will report on the mix of brand to Dr. On an annual basis. We said it was $85 15 for 2020, our brand to Dr. And the long term goal is to get to 50 50, but we haven't put a.
The timeframe on net book and we'll work hard to make our way there overtime.
Great. Thank you.
Next question, we have Ross Sandler from Barclays Ross Your line is open.
So the environment.
Hey, Ross, we can't hear you.
On your line is open.
Good day.
Ross any there.
Operator, I think maybe Richard just kind of the next person on the queue.
Yes for the next one we have mined loans <unk> from Deutsche Bank. Your line is open.
Thanks, two questions. If I can first given 85% of <unk> AD revenue is brand and as you said they plan for the year kind of early in the quarter can you just give us a sense for what percent maybe of brand revenue you typically have visibility into at this point in the year.
And any sense of what that looks like and related to that do you worry at all that capital riots may have impacted brands planning in a way that could be a drag for the rest of the year do you feel like that that was short land and then the second one.
You talked about some of these categories that connects their spend on map. So wondering was that a direct function of the performance where those were kind of uncapped spenders, who would extent just as much a year ago has the performance been there and now theyre seeing the performance on anything you can share about.
Whats really getting them excited to spend that much more.
Thanks, Lloyd so first on terms of visibility visibility can come in lots of different forms. When you think about the brand side. It can come from events that happen every year.
Or.
Most typical years when there isn't a global pandemic it can come from events that happen every four years.
And looking at these things and thinking through how advertisers typically show up sometimes pre selling takeover products to them, which are performing much better than where we can get higher prices than we've been able to in the past against the larger audience.
Sometimes it comes from an upfront that an agency or an advertiser signs with us which is an incentive for them to spend at a certain level, which we're really pleased with how the upfronts went for us a real indication of how this growing audience and better AD formats are able to yield better results for advertisers and theyre willing to commit to spend more and to incentives.
To spend more than they have in the past.
And I can also come from them contracting with us to.
On spend around a certain day, but then a lot of it just comes from how they spend on any given day in the auction and our ability to perform for them on any given day, what we've noticed in the past is when there is.
Unrest for one reason or another and last June is a great example of this debt advertisers around brand. They often pause when there is a more important conversation then the conversation around their product and when they come back. They are objectives haven't changed their need to reach the same number of customers haven't changed and they often should then tried.
Do that in a shorter timeframe and so we often see a catch up.
So if we look at <unk> at the beginning of this year and how things got off to a slower start that doesn't give us.
Pause about the opportunity for the rest of the year, we look at March and we see how things can play out as economies are opening up one brand to have decided how they want to show up from a brand advertising perspective, and we see lots of positive momentum.
Your second question was about these map advertisers and maybe what caused them to grow their spend so significantly and I would point to a few different trends. The first is that theyre topics has become a bigger conversation amongst consumers perhaps than they were in years past as bad income to the leagues in the United States.
And because of our mainstream here I think you could say the same thing for crypto and either for retail investing the second is debt, we have a better performing more appealing ad formats.
Let them reach their audience on Twitter, where there is a great conversation around those topics and then if it doesn't perform youre not going to use it but it's been performing at.
They're high lifetime value and that means they are willing to perhaps spend more than others had been for their ads debt.
It's performing for them, which allows them to keep coming back on spending more. So we're optimistic that these are secular trends that can continue for some time, but they are also indicative of our ability to deliver for advertisers at the right moment against the rate conversation on Twitter.
Thank you.
Again, we have the line of Ross Sandler from Barclays. Your line's open.
Oh, Hey, sorry about that then goes on we know.
We can hear you you're on copper now.
[laughter] got on board now I'm on the on sale.
All right.
So net international accelerated.
Paul just a higher mix of direct response or any color on what on with stronger.
Obviously, you mentioned the stuff on the U S Brooklyn color on international.
On the rooftop.
During the analyst day, you talked a little bit about.
How e-commerce is going to be one of the areas that you would go out to go after.
Kind of ask a map.
Can you just talk a little bit about the strategy for bringing in more e-commerce advertisers and what kind of timeline that might happen on that seems like that's an area where some of your peers are doing a lot of budget.
It would be good area for you guys to step into so any color on e-commerce advertising. Thanks a lot.
Okay. Thanks, Ross So first on international there's two things at play I mentioned on earlier, but if you think about them more broadly first concert <expletive>.
All around the world around when COVID-19 started to impact the geography, and COVID-19 was a bigger impact earlier in the quarter in Asia and in Europe than it was in the United States and so that can lead to some of the this year over year growth that youre seeing but so too can debt map trend that you described that we have some <unk>.
Heavier markets outside of the United States, Japan, Europe are great examples of that and that means that when map is performing really well.
And in January and February for example, when brands, we're still showing up or deciding how they want to shop and we saw.
Things weren't as strong as they were in March on the brand side that when that's carrying the day that can be better for those markets, where it's a bigger part of the business naturally. So those two things combined definitely helped us on the international side and now that we've got things.
When we look at March and you see where we were gaining momentum on the brand side that bodes well for better for the United States on the E Commerce side, a couple of things that we should point out.
On the first is.
Youll, hopefully see a steady cadence.
From us of improvements both on the revenue product and the consumer product side over the course of this year.
I'll point to one which is just last week, we released business profiles to hundreds of businesses, where they can have a profile that's different than yours or mine might be on Twitter with their hours of operation their phone number on menu or something that's relevant to their business.
We'll roll those out over time to more folks and it's just a good example on the things that we need to do to continue to move further and further down funnel and help advertisers find their customers on the service.
Great. Thank you and maybe you can take the next question from Twitter. It comes from day Count Rajiv.
And he has two questions. The first one is about onboarding.
And whether or not you can share any plans in 2021 to improve and accelerate on boarding.
And then second question working around spaces, and asking if we can share any metrics around spaces usage and engagement.
Yes.
So on on boarding as an area of the.
We now have the ability to put a lot of great focus on power behind mainly because of everything we're doing with topics on interest.
We have 7000 topics now across nine languages.
And we've built this in Q on boarding so no longer do you have to go and find and follow all the accounts that might match your interest.
Now you can actually pick some interest and we can give you tweaks and also accounts spread in the timeline and then once you're on the timeline. We will continue to introduce you to topics. We my follow on then you can also use that to follow account long term as well.
We think thats going to be a huge boost for.
Sure.
For People's experience on Twitter, and we've already seen an improvement.
Customers falling 33% more topics don't sign up.
So to me this continues to be the focus on I know that will clear the most dividends because it goes.
And to the rest of our ecosystem, including things like spaces.
And spaces is silver early.
We're updating.
Every week.
Iterate it very very quickly.
We've more or less published.
Our roadmap and take feedback on share plans and designs with Ron as you follow at Twitter spaces.
You can see everything we're thinking.
Things that we're doing we don't have any metrics to share right now, but we do believe it's an important part of serving conversation one important format that complements what people do with tweaks and will complement what people will do with long form content as well.
And we're really excited about what we're doing on <unk> and received their use cases nearly every day.
So we're pushing really hard on this.
Yes.
I imagine it'll it'll lead to new features and new products that corresponds to.
Some of the things that Mike was talking about earlier.
In terms of growth.
Direct response.
And also commerce.
There's just a lot of potential with the risk based on the new surface area.
Okay. Thank you and we'll take the next question operator.
Thank you and for the next one we have rights, Okay and sounds.
Sounds from Mike said partners. Your line is open.
Hi, Thanks for taking the questions.
Two one on on the map side last year, you had said that you were going to delay parts of map.
For sort.
Sort of to understand IVF and you didn't want to push things out too fast and then have to switch them up just curious now that you've obviously done pieces of of mapping and updated things youre seeing a lot of progress and you don't seem terribly concerned are there are still pieces of math that still need to launch like sort of just give us a sense of like what else needs to be done I'm sure. It's always evolving but are there major things that got it.
Delayed that you are now more comfortable pushing out or that you were waiting on or maybe are still waiting on and then two just a big picture question for Jack you've added I guess, you've added about $5 million M. D. I used in the U S Europe, or North America, and Europe to $38 million from 33.
I guess, just how do you think about what the Tam is.
Domestically like how big do you think the U S market can be for Twitter and <unk>.
What do you think you need to do to to move towards whatever goal you have long term on your mind.
I'll take the first part on map rich.
The team has implemented over 30 improvements from where we were over a year ago on nap on some of them are about making sure. We've got the right policies and access to the right signal some of them are improving what the images look like and giving us the opportunity to show our carousel of multiple images others our deepened.
The models, where the model.
What how we access them on who has access to them and how quickly we're able to run them and deliver better outcomes for advertisers.
We look ahead, there is a rich roadmap of improvements that we want to deliver for Matt that will make it better I wouldn't want to call out any one of them because it ought to be more like a steady drumbeat as much of map is important though I wanted to just point you more broadly to the Dr opportunity for us as we move Dr from 15%.
Net of revenue of ads revenue to 50% over time, we need to move all the way down the funnel they need to be able to begin a purchase on Twitter you need to be able to know all of the things about our business and for them to be able to share all the things that they want to see with you. So that you are comfortable transacting with them now.
Just learning about them, which has been such a great use case for Twitter over time as people launch new products and services and connected with what's happening. So you should keep looking for improvements on map, but you should also look for is continuing to move down the funnel and helping you.
As an advertiser to deliver better and better.
Outcomes.
In terms of the market says Richard.
Obviously, they obviously think it's quite large.
The reason why as I look at the use case on leases with just asking a question on what's happening on the news these days.
Everyone has that question and everyone wants to be informed and where we have failed and serving that Houston is not.
Enabling people to get to what they're interested in asthma. So thus far I continue to point to topics and interests from we continue to make a lot of progress there.
More.
The more we make the EV tomorrow.
The more we have a larger catalog or topics more.
Our our machine learning algorithms to go.
Over over time in terms of.
Enabling more and more topics.
Every single day around the world.
It certainly benefits of your absolute certainly benefits on our global audience. So.
We believe our core use case or <unk>.
Answering your question on what's happening on a secondary use crews are being on.
We'll talk about it.
Our fundamental and it's.
Just a question on making sure that we provide for easier Clos on <unk>.
Order to do that and when people do come into Twitter for Chris.
Particular events that they see around them.
We are able to retain them and not just the whole thesis behind topics and interests.
You came in for COVID-19, but there's so much more in terms of business. These topics.
You can follow now.
Later on on regulatory and then offer.
Person to talk about it so everything that we're doing is really around serving those two core jobs.
And the reason that's important is because it's a massive fundamental human behavior.
And we continue to unlock parts of that as we go on.
Have you looked at the COVID-19 cohort of people that came in sort of with the surge of COVID-19 and what the retention has been of those users.
Richard we have and that group has retained better than previous cohorts have.
I should.
Preface or.
After that I should point out yes, it's too early to call, whether that's for because the environment in which they've been accessing Twitter hasnt changed much since they first started coming at Twitter in March of last year, but we're really pleased and see it as a positive sign that they've retained better. It means that we're solving the job that they are coming to us for every day.
And that work for us is to make sure that as economies open up as the event that <unk> been watching from there. So funds are now available to them in person that they continue to come to cater for all the rich conversation not just around COVID-19, not just your on politics for a sports and entertainment and investing in all the other things that they can find on the service.
Thanks very helpful.
For the next one you have mark Mahaney from Evercore ISI Mark Your line is open.
Question on it has to do with the.
The growth outlook. The MTA your growth outlook, you talked about at your Investor day on kind of 20% growth from next couple of quarters, you've got tougher comps and so you are talking about lower the net just talk about why.
How do we gain confidence how do you gain confidence that you can get back to this 20% growth post Steve tough comps and.
And what's the pathway to doing that and how book how would you say double digit system, just like how low could we go on the next couple of quarters. Thanks a lot.
Hey, Mark So we said low double digits.
For our Q2, three and four with a low point likely in Q2, given the 30% plus year over year MGA you growth that were comping.
Last Q2, because the way we calculate average MD with the average of all the days of the quarter and this group of people who joined US in March of last year had a bigger impact on the Q2 number then they obviously would have on the Q1 number given they were with US for 20 days of the of Q1 and <unk> 94.
Q2.
When we look at our product roadmap when we look at the way events tend to bring people to our service both events that we know about and the steady cadence of events that we don't know about that bring people to Twitter to learn more to discuss them.
I hear from people on a different perspective about those events.
Those things.
It gave us the confidence we look in the past at how we've been able to drive people to the service and help them find what they're looking for when we look at the healthy top of funnel that we've got those people who are new to Twitter, who havent been on Twitter for some time and are coming back.
Those all present opportunities for us to grow our day on a compounded basis at 20% or so which is what it will take to get to that $315 million. We feel really good about the product roadmap and about the investment in front of a second help us get there.
Okay. Thank you Ned.
For our next question, we have Brian Miller Bryan from.
Morgan Stanley Your line is open.
Great. Thanks for taking my questions I have two net could you.
Might have missed it but can you just explain to US again why the integration of the Sky network increases your audience side I might have missed them just a little confused by that so maybe help me on me on that on the audience increases and how that could actually help the monetization later this year and then secondly, just on map can you just let us know whether the map advertisers.
Grew quarter over quarter, and how fast is that base of advertisers growing.
Hey, Thanks, Brian So first on SK AD network so.
We don't have confidence that we can deliver a relevant map add to somebody we werent showing them on that pad.
And there was we weren't able to.
Report out to advertisers the success of their campaign without having access to <unk>.
Something like the <unk> or something that another measure of partner in the past is able to provide to us and so with SK AD network, we're able to provide better reporting.
Two our map advertiser across a broader group of people than we were able to before.
Who are using iOS.
Now I remember.
Map advertisers will have to decide and then ATT world if theyre getting the data that they want in order to show their ads on deciding what price they are willing to pay in order for those ads to hit because they'll be getting aggregated or campaign level data as opposed to a device level data.
And the entire ecosystem will have to adjusted net.
I am certain advertisers objectives aren't changing they want to acquire the same number of customers that want to know much as much about them as they can and the economics are there businesses arent changing so it's going to take a while for the broader ecosystem to adjusted US and as we said we've incorporated some modest impact from AT&T into Q2.
Take a while for us to know exactly how this is all going to play out the second part of your question was about the number of map advertisers.
So increasing the number of advertisers on Twitter is an important objective for us over time, but it's not going to be the best measure of near term success. Because there are so many large advertisers with whom whether its map or brand ads are Dr. More broadly.
Sure.
We have strong relationships with them already but with a larger audience of better formats with more relevance.
Debt, we can deliver even better outcomes for them on a better ROI than we could before and they can therefore put more dollars against Twitter than they could before and so Matt could easily grow the brand side of the business could easily grow really nicely without you're seeing the number of advertisers growing meaningfully now over time.
It's an important objective for us to grow the number of advertisers.
That's why we stopped the product and engineering and the sales teams on the SMB side. So that we can help those smaller businesses find their customers understand the use case to advertise on Twitter help them launch their campaigns, because it's a different dynamic to help on advertiser launch a campaign.
And then it has to help an entrepreneur who is running a small business down the street a launch that campaign and as Jack has talked about before things like topics should really help bring those small businesses closer to their customers over time on Twitter, but number of advertisers might not be the best near term measure although over time it will be important.
Okay. Thanks, Dan.
The next question, we have Colin Sebastian from Baird.
Your line is open.
Alright, thanks, good afternoon.
I guess first Ned follow up on the guidance.
It looks like on the profit guide, there's a pretty big swing in Q2, you, obviously mentioned big step up on head count.
But curious if there are other moving parts in that number for the quarter and then secondly, I think maybe for Jack a bigger picture question.
During analyst day about reducing the time it takes to launch a feature from up to a year down to a few weeks and expect to have some urgency to rollout some of the new features for shopping and small business profiles that kind of thing so I wonder what the timeline is now and.
That might be as you get further in the year as you start to leverage.
Engineering head count.
Hey, Colin on the first part keep in mind, a few things around Q2, one is that when you grow expense of 20% on 20% or so in Q1 and you continue to grow head count in Q2, you've got a larger expense base and you can tell from our guidance.
The range of outcomes for our revenue so you're matching.
Steady growing steadily growing expense base.
With that revenue base that falls out of the revenue guidance, but if you think about the things underneath that one will continue to hire at a steady pace and we're lapping a period, where we didn't.
<unk> head count as quickly in Q2 of last year. When we were adjusting to this on shelter in place on hire people from home environment. At this point, we actually have over 500 people who work at Twitter, who have never met their manager in person and were on boarded from their homes.
When you add that with some of the recent acquisitions that we've done with the share grants the annual refreshes that we do that happened in Q2 to have an outsized impact on Q2's P&L because they start to vest. In Q2 is also you have a little catch up. This we had the same dynamic last year.
As we granted the same way and as long as we're granting us. So you should expect the same thing to continue that the biggest absolute dollar increase in stock based compensation will happen from Q1 to Q2 because of those refreshed growth. So those are some of the things that I point. She took on ill turn to Jack for the second part.
Yeah, I mean, I would say that.
Those parts of our.
Of our products on both consumer and revenue products that are moving much faster than others.
A matter of.
From parts of the project Capex basis from some slick we're updating every single week.
And there's other things being pulled along with them that up to a trend.
I would say we've gotten it down to a few months at this point per per revenue products.
Estimate.
And we'll continue to push that even further but.
The golar boyfriend engineer to come in and to be able to get up to speed within two to three weeks.
I'll be able to push production.
And for any idea on leverage.
Can you get it out.
On a matter on matters of month on.
So, it's an experiment and moving along.
And we can we can iterate.
So we are we are on the track.
We are on track to do that.
We're definitely seeing in some of our consumer products from we're definitely going to see a lot more of it.
On your products.
On.
On the commerce side on the subscription.
<unk>.
We are going to see those products laws.
Hopefully very very soon.
And.
We're excited to learn from them, they're not going to be fully complete we're going to put something out loans.
From the small business to start and then we'll grow it.
As we make us stronger on.
And learn from.
I mean anything that we see those gaps but we.
We intend to move with a lot of urgency on.
We're on foundations are so much better now than they have been in the past.
Thank you.
From your next question you have.
A meaningful part of your health and safety initiatives.
And then for Ned.
As Jack mentioned previously what's happening is so important to Twitter positioning, including the advertisers somebody know live events has always been a big part so.
Thinking ahead to the new front next week and thinking back over the past year and a half where you know the nature of what Vince has changed so much.
And as we come back.
Normal license, that's an advantage that you think that the sales team can lean into and take advantage of that'd be great. Thanks.
I think birdwatchers or something that we know we must try out.
And I've said many times publicly on.
Growth global centralized.
Content moderation, especially around especially the information just will not scale over time.
And the more we can do.
Tools to those people directly.
And easy low.
Successful on it doesn't.
On a friction.
On what they intend to do that.
Better so it's.
It's a strong experiment.
It is early we're learning apps on from it.
I do believe it has a bright future and is a good complement to everything else, we have to do around content moderation.
But generally.
You'll see us more and more on move away from a global centralized model and to give them more tools to individuals directly and give them more tools to the.
Communities this happened to be on us.
And I think Thats I think thats right.
I don't believe a company like ours should be.
Ultimately.
<unk> Arbitrer.
All of these things it should be more of the wisdom on the crowds and we're trying to find that right balance.
And then the second part of your question Dan was about events.
And all the things coming back around the world and how those can be a real opportunity for sales people I think that's spot on whether it's the Olympics, which we've been talking to advertisers and agencies about for over a year now we've got a great relationship with NBC universal to make sure that the metal moments in the highlights are on Twitter.
In near real time, because there'll be conversation around those things and we can go find advertisers who want to sponsor those highlights or the Euro Cup, which is coming up soon.
These things may be happening in a different way than they have in the past, but the conversation on Twitter continues to be really rich around them as true for award ceremonies, as well, where sometimes there are fewer people watching them on television, but the conversation on Twitter continues to be robust diesel continue to be great conversation pieces for us with.
Partners as they talk about how they can launch their new products and services, many of which that pent up supply for because they weighted to launch things and connect with what's happening because they will inevitably be more happening at the same time as those are important conversation starters with advertisers and agencies as we continue to move closer and closer to <unk>.
1050 brands to direct response.
Those conversations with advertisers will be important, but so too will be delivering these really easy to measure awesome outcomes on the direct response side, where there'll be important conversations with those advertisers that they'll be able to measure their success directly but debt performance.
On the downloads on purchases that are started on Twitter.
Okay. Thanks, Jack Thanks, Dan.
And we have one last question and sorry. The last question. We have spent sale from Jefferies. Brent Your line is open.
Great. This is James on for Brian. Thanks for taking my questions as more of your users start falling interest in topics and have you seen an improvement in the quality of AD targeting in an overall contextual relevance of your assets and do you think given the diversity of advertisers today, where someone calls us to say hockey for us.
<unk> per case or game tickets or do you think theres still a lot of work ahead on that ex working capital relevance on and then I have a quick follow up.
Hey, James the short answer is we're getting there, but we still have more opportunity in front of us on a couple of levels. The first is that we're not yet leveraging that signal around those 7000 topics and those many people who already follow one as well as we can.
We have lots of great signal about what you care about and the moment that we can use to show you a great add that there's definitely room for us to improve but the second is that over time, we're going to have more and more topics and we're going to have more and more signal about on what belongs in those topics, which type of seed care about when you care about those topics that we can better use.
To help advertisers find you in the right moment. So I think we're just getting started on that.
Net on both sides of the equation that is.
The breadth of topics and the depth of those topics.
On the followership around them and then on the other side the long tail of advertisers, who will have interest in advertising against those topics and continuing to build that out over time.
But as you followed up on and then just one quick follow up on that would be great. If you could just share an update on fleet and how that's been performing against your initial expectations are you seeing strong engagement from brands and users interacting with the format and then if theres any update on just monetization plans that would be great to hear thanks.
No update on monetization just yet.
We are seeing some new activity in the.
On the new.
Graphics utilizing fruits.
So we're still learning.
What does book somebody wants to be adjusted.
Reminder, like we were.
We started those products not to build a storage project product within Twitter, but to solve the problem of people not wanting to.
Three because they appear that thing around too long.
And the value that it is working very well.
And then.
Certainly has taken on.
They certainly have seen a different audience than we normally see.
But we still have much to learn and a lot to figure out in terms of like where it goes from here.
Great. Thank you.
Okay.
Okay, I think that wraps it up thank you all for joining US. We appreciate your interest in Twitter, we look forward to speaking with you next quarter.
For earnings for Q2 on July 20, <unk>. After the market closes until then we'll see you on Twitter.
Ladies and gentlemen, this concludes today's conference call. Thank you all for participating you may now disconnect.
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