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> In an update to investors, Twitter reported a decline of about 40% year-over-year in both revenue and adjusted earnings for the month, the people said. Mathe

> In an update to investors, Twitter reported a decline of about 40% year-over-year in both revenue and adjusted earnings for the month, the people said. Mathematically this is difficult to believe... Unless the interest payment == the cost reductions or the interest was adjusted out of the adjusted earnings and the cost reductions == 40% etc. Someone somewhere in the long line of people from twitter to 'people familiar with the matter' are either making shit up or waving their hands in the air and grabbing the nearest number.

gregshap 4y ago
Yes adjusted earnings in this case is most likely something like "Adjusted EBITDA" so interest cost is adjusted out by definition, and they may also adjust out things like severance payments (if they are actually paying them).
- blitzar 4y ago
  "Adjusted EBITDA" is what I assumed as well - no interest, no restructuring costs etc. Given revenue ~= costs at twitter the head count reduction (~80% and including all the really fat cats at the top) & reduction in expensive microservices, benefits, free meals etc has shaved only 40% off the costs.
kasey_junk 4y ago
Googles ad revenue fell around 10% in the same period just based on secular trends. Twitter fired their ad sales team and angered their ad partners. It seems perfectly feasible they added a 30% drop. Also investor calls are extremely easy to source because there are so many people on the call and most of them have no vested interest in keeping the numbers secret.
- tablespoon 4y ago
  > Twitter fired their ad sales team and angered their ad partners. Which was just baffling move to me. We're not selling enough, so fire the sales team and let the product sell itself? How does that make any sense? I suppose they could have been thinking Blue check-mark sales would magically plug the hole, but that was quickly proved to be a stupid, over-optimistic idea.

gregshap 4y ago

Yes adjusted earnings in this case is most likely something like "Adjusted EBITDA" so interest cost is adjusted out by definition, and they may also adjust out things like severance payments (if they are actually paying them).

blitzar 4y ago
"Adjusted EBITDA" is what I assumed as well - no interest, no restructuring costs etc. Given revenue ~= costs at twitter the head count reduction (~80% and including all the really fat cats at the top) & reduction in expensive microservices, benefits, free meals etc has shaved only 40% off the costs.

kasey_junk 4y ago

Googles ad revenue fell around 10% in the same period just based on secular trends. Twitter fired their ad sales team and angered their ad partners. It seems perfectly feasible they added a 30% drop. Also investor calls are extremely easy to source because there are so many people on the call and most of them have no vested interest in keeping the numbers secret.

tablespoon 4y ago
> Twitter fired their ad sales team and angered their ad partners. Which was just baffling move to me. We're not selling enough, so fire the sales team and let the product sell itself? How does that make any sense? I suppose they could have been thinking Blue check-mark sales would magically plug the hole, but that was quickly proved to be a stupid, over-optimistic idea.