Twitter Inc., adjustment to net income (loss)

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss) (as reported)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Add: Change in unrealized gain (loss) on investments in available-for-sale securities	(25,917)	11,318)	13,785)	(393)	(1,325)
Net income (loss) (adjusted)	(247,326)	(1,124,308)	1,479,444)	1,205,203)	(109,388)

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Twitter Inc., adjusted profitability ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net Profit Margin
Reported net profit margin	-4.36%	-30.56%	42.37%	39.63%	-4.42%
Adjusted net profit margin	-4.87%	-30.25%	42.77%	39.61%	-4.48%
Return on Equity (ROE)
Reported ROE	-3.03%	-14.25%	16.84%	17.71%	-2.14%
Adjusted ROE	-3.38%	-14.11%	17.00%	17.71%	-2.17%
Return on Assets (ROA)
Reported ROA	-1.57%	-8.49%	11.54%	11.86%	-1.46%
Adjusted ROA	-1.76%	-8.40%	11.65%	11.86%	-1.48%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Twitter Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Twitter Inc. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Twitter Inc. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Profitability Ratio
Net profit margin¹	-4.36%	-30.56%	42.37%	39.63%	-4.42%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(247,326)	(1,124,308)	1,479,444)	1,205,203)	(109,388)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Profitability Ratio
Adjusted net profit margin²	-4.87%	-30.25%	42.77%	39.61%	-4.48%

2021 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × -221,409 ÷ 5,077,482 = -4.36%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × -247,326 ÷ 5,077,482 = -4.87%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Twitter Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Profitability Ratio
ROE¹	-3.03%	-14.25%	16.84%	17.71%	-2.14%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(247,326)	(1,124,308)	1,479,444)	1,205,203)	(109,388)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Profitability Ratio
Adjusted ROE²	-3.38%	-14.11%	17.00%	17.71%	-2.17%

2021 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -221,409 ÷ 7,307,199 = -3.03%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Stockholders’ equity
= 100 × -247,326 ÷ 7,307,199 = -3.38%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Twitter Inc. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Profitability Ratio
ROA¹	-1.57%	-8.49%	11.54%	11.86%	-1.46%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(247,326)	(1,124,308)	1,479,444)	1,205,203)	(109,388)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Profitability Ratio
Adjusted ROA²	-1.76%	-8.40%	11.65%	11.86%	-1.48%

2021 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -221,409 ÷ 14,059,516 = -1.57%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Total assets
= 100 × -247,326 ÷ 14,059,516 = -1.76%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Twitter Inc. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Twitter Inc. (NYSE:TWTR)

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