5. Financial Analysis
Conduct financial analysis for Twitter based on its revenue, profit, and key financial ratios (Provided in the screenshots).
Evaluate the financial performance of Twitter using:
. Revenue (based on years 2013 through 2017) -- and its trend using CAGR calculation and what the trend implies
. Net income [or Net loss] (based on years 2013 through 2017) -- and its trend using CAGR calculation and what the trend implies
. Key financial ratios for 2016 and 2017 (include at least 3 key financial ratios, such as D/E ratio (i.e. Total liabilities / Total stockholders' equity), ROE (i.e. Net income (or Net loss)/Total stockholder's Equity), Current Ratio etc.) -- and their trends and what they imply
C-139 CASE 13 Twitter Inc. in 2018: Too Little Too Late? EXHIBIT I Consolidated Statement of Operations: Fiscal Years 2013-2017 (in thousands, except per share data) Year Ended December 31. 2017 2016 2015 2014 (in thousands, except per share data) 2013 Revenue $2.443.299 $2,529,619 $2.218.032 $1,403.002 $ 664.890 861.242 932.240 729,256 446,309 266,718 542.010 713,482 806.648 691,543 593,992 717,419 957,829 871.491 614,110 316,216 283,888 293.276 260,673 189.906 123,795 2.404,559 2,896,827 1,941,868 2.668,068 (450,036) 1,300,721 (635,831) 38,740 (367208) (538.866) (105,237) (99.968) (98, 178) (35.918) (7.576) 28.921 26,342 14 909 (3.567 (3,739 (578,351) (647.146) Costs and expenses Cost of revenue Research and development Sales and marketing General and administrative Total costs and expenses Income (loss) from operations Interest expense Other income (expense), net Loss before income taxes Provision (benefit) for income taxes Net loss Net loss per share attributable to common stockholders: Basic and diluted Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted Other Financial Information: Adjusted EBITDA Non-GAAP net income (oss (95,418) (440,834) (533,305) 12.645 16.039 (12274) $ (108,063) $ (456,873) S (521,031) (531) (1.823) $ (577.820) $(645,323) (0.15) 5 (0.65 $ 0.79) $1096) $ (3.41) 732,702 702.135 662.424 604.990 189,510 $ 557,807 $ 300,896 $ 75,430 $ 862.986 $ 328.859 $ 751,493 $ 264,406 $ 180,486 $ 68,438 $ (19,057) Source: Twitter, Inc. Annual Report 2017 C-140 PART 2 Cases in Crafting and Executing Strategy EXHIBIT 2 Twitter Inc.'s Consolidated Balance Sheets, 2016-2017 (in thousands, except par value) December 31, 2017 December 31 2016 $1,638,413 2.764,689 $ 988.598 2,785,981 664.268 254.514 5.321.884 773,715 49,654 1,188,935 78.289 $7.412,477 650.650 226.967 4.652.196 783,901 95,334 1.185.315 153.619 $6.870.365 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable net of allowance for doubtful accounts of $5,430 and $7.216 as of December 31, 2017 and December 31, 2016, respectively Prepaid expenses and other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Other assets Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued and other current liabilities Capital leases, short-term Total current liabilities Convertible notes Capital leases, long-term Deferred and other long-term tax liabilities, net Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock. $0.000005 par value-200,000 shares authorized none issued and outstanding Common stock. S0.000005 par value-5,000,000 shares authorized: 746,902 and 721,572 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively Additional paid in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ 170,969 327,333 84.976 583.278 1.627,460 81,308 13.240 59.973 2.365,259 $ 122.236 380,937 80,848 584,021 1.538.967 66.837 7,556 68049 2.265.430 7.750,522 31.579) (2671,729 5,047.218 $7,412,477 7.224.534 (69.253) 2.550.350) 4,604,935 $6,870.365 Source: Twitter, Inc. Annual Report 2017 C-139 CASE 13 Twitter Inc. in 2018: Too Little Too Late? EXHIBIT I Consolidated Statement of Operations: Fiscal Years 2013-2017 (in thousands, except per share data) Year Ended December 31. 2017 2016 2015 2014 (in thousands, except per share data) 2013 Revenue $2.443.299 $2,529,619 $2.218.032 $1,403.002 $ 664.890 861.242 932.240 729,256 446,309 266,718 542.010 713,482 806.648 691,543 593,992 717,419 957,829 871.491 614,110 316,216 283,888 293.276 260,673 189.906 123,795 2.404,559 2,896,827 1,941,868 2.668,068 (450,036) 1,300,721 (635,831) 38,740 (367208) (538.866) (105,237) (99.968) (98, 178) (35.918) (7.576) 28.921 26,342 14 909 (3.567 (3,739 (578,351) (647.146) Costs and expenses Cost of revenue Research and development Sales and marketing General and administrative Total costs and expenses Income (loss) from operations Interest expense Other income (expense), net Loss before income taxes Provision (benefit) for income taxes Net loss Net loss per share attributable to common stockholders: Basic and diluted Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted Other Financial Information: Adjusted EBITDA Non-GAAP net income (oss (95,418) (440,834) (533,305) 12.645 16.039 (12274) $ (108,063) $ (456,873) S (521,031) (531) (1.823) $ (577.820) $(645,323) (0.15) 5 (0.65 $ 0.79) $1096) $ (3.41) 732,702 702.135 662.424 604.990 189,510 $ 557,807 $ 300,896 $ 75,430 $ 862.986 $ 328.859 $ 751,493 $ 264,406 $ 180,486 $ 68,438 $ (19,057) Source: Twitter, Inc. Annual Report 2017 C-140 PART 2 Cases in Crafting and Executing Strategy EXHIBIT 2 Twitter Inc.'s Consolidated Balance Sheets, 2016-2017 (in thousands, except par value) December 31, 2017 December 31 2016 $1,638,413 2.764,689 $ 988.598 2,785,981 664.268 254.514 5.321.884 773,715 49,654 1,188,935 78.289 $7.412,477 650.650 226.967 4.652.196 783,901 95,334 1.185.315 153.619 $6.870.365 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable net of allowance for doubtful accounts of $5,430 and $7.216 as of December 31, 2017 and December 31, 2016, respectively Prepaid expenses and other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Other assets Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued and other current liabilities Capital leases, short-term Total current liabilities Convertible notes Capital leases, long-term Deferred and other long-term tax liabilities, net Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock. $0.000005 par value-200,000 shares authorized none issued and outstanding Common stock. S0.000005 par value-5,000,000 shares authorized: 746,902 and 721,572 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively Additional paid in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ 170,969 327,333 84.976 583.278 1.627,460 81,308 13.240 59.973 2.365,259 $ 122.236 380,937 80,848 584,021 1.538.967 66.837 7,556 68049 2.265.430 7.750,522 31.579) (2671,729 5,047.218 $7,412,477 7.224.534 (69.253) 2.550.350) 4,604,935 $6,870.365 Source: Twitter, Inc. Annual Report 2017
