Name: Twitter Inc. (NYSE:TWTR) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Twitter Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Depreciation and amortization expense	544,848)	495,177)	465,549)	425,498)	395,867)
Stock-based compensation expense	629,901)	474,932)	378,025)	326,228)	433,806)
Amortization of discount on convertible notes	—)	101,733)	113,298)	105,926)	80,061)
Bad debt expense	1,560)	18,775)	3,083)	1,610)	586)
Deferred income taxes	(228,774)	(36,978)	84,369)	43,409)	(6,415)
Deferred tax assets valuation allowance release	—)	—)	—)	(845,129)	—)
Deferred tax assets establishment related to intra-entity transfers of intangible assets	—)	—)	(1,206,880)	—)	—)
Deferred tax assets valuation allowance establishment	—)	1,101,374)	—)	—)	—)
(Gain) impairment on investments in privately-held companies	(101,445)	8,842)	1,550)	3,000)	62,439)
Other adjustments	2,975)	(10,764)	(19,989)	(15,749)	5,167)
Accounts receivable	(189,946)	(188,039)	(67,000)	(130,871)	2,668)
Prepaid expenses and other assets	(121,501)	6,398)	(29,602)	126,470)	(13,974)
Operating lease right-of-use assets	219,287)	168,000)	149,880)	—)	—)
Accounts payable	20,869)	18,232)	2,946)	(1,533)	8,371)
Accrued and other liabilities	260,475)	123,345)	92,681)	95,256)	(29,304)
Operating lease liabilities	(184,151)	(152,531)	(130,205)	—)	—)
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions	5,033)	(24,595)	18,700)	89,322)	(32,239)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	854,098)	2,128,496)	(162,295)	134,115)	939,272)
Net cash provided by operating activities	632,689)	992,870)	1,303,364)	1,339,711)	831,209)
Purchases of property and equipment	(1,011,546)	(873,354)	(540,688)	(483,934)	(160,742)
Proceeds from sales of property and equipment	8,462)	9,170)	6,158)	13,070)	2,783)
Purchases of marketable securities	(3,736,659)	(6,272,395)	(5,798,111)	(5,334,396)	(2,687,214)
Proceeds from maturities of marketable securities	3,811,768)	4,554,238)	4,928,097)	3,732,973)	2,579,747)
Proceeds from sales of marketable securities	1,172,626)	1,092,754)	367,116)	58,721)	124,826)
Changes in restricted cash	—)	—)	—)	—)	3,594)
Purchases of investments in privately-held companies	(39,761)	(11,912)	(51,163)	(3,375)	(825)
Investments in Finance Justice Fund	(69,500)	—)	—)	—)	—)
Business combinations, net of cash acquired	(32,702)	(48,016)	(29,664)	(33,572)	—)
Other investing activities	(50,065)	(11,050)	2,281)	(5,000)	24,899)
Net cash (used in) provided by investing activities	52,623)	(1,560,565)	(1,115,974)	(2,055,513)	(112,932)
Proceeds from issuance of convertible notes	1,437,500)	1,000,000)	—)	1,150,000)	—)
Proceeds from issuance of senior notes	—)	—)	700,000)	—)	—)
Purchases of convertible note hedges	(213,469)	—)	—)	(267,950)	—)
Proceeds from issuance of warrants concurrent with note hedges	161,144)	—)	—)	186,760)	—)
Debt issuance costs	(16,769)	(14,662)	(8,070)	(13,783)	—)
Repayment of convertible notes	(954,000)	—)	(935,000)	—)	—)
Repurchases of common stock	(930,530)	(245,292)	—)	—)	—)
Taxes paid related to net share settlement of equity awards	(26,982)	(22,587)	(19,594)	(19,263)	(8,962)
Payments of finance lease obligations	(565)	(23,062)	(66,677)	(90,351)	(102,775)
Proceeds from exercise of stock options	2,056)	5,442)	788)	3,415)	9,444)
Proceeds from issuances of common stock under employee stock purchase plan	68,792)	55,471)	42,378)	29,288)	23,920)
Net cash provided by (used in) financing activities	(472,823)	755,310)	(286,175)	978,116)	(78,373)
Foreign exchange effect on cash, cash equivalents and restricted cash	(13,080)	(4,005)	4,576)	(14,296)	9,911)
Net increase (decrease) in cash, cash equivalents and restricted cash	199,409)	183,610)	(94,209)	248,018)	649,815)
Cash, cash equivalents and restricted cash at beginning of period	2,011,276)	1,827,666)	1,921,875)	1,673,857)	988,598)
Cash, cash equivalents and restricted cash at end of period	2,210,685)	2,011,276)	1,827,666)	1,921,875)	1,638,413)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Operating cash flow exhibited a peak in 2018 and 2019 before entering a downward trend through 2021. While net income remained highly volatile, shifting between profitability and significant losses, the company maintained positive cash flow from operations throughout the analyzed period. This discrepancy is primarily attributed to substantial non-cash adjustments, most notably a steady increase in depreciation and amortization and a significant rise in stock-based compensation, which increased from 433 million in 2017 to 629 million in 2021.

Capital Expenditure and Investment Trends: A consistent and aggressive increase in investments in property and equipment is observed, with annual expenditures rising from 160 million in 2017 to over 1 billion in 2021. Investing activities were characterized by large-scale movements in marketable securities, where multi-billion dollar purchases were frequently offset by maturities and sales. By 2021, net cash from investing activities shifted to a positive position, reflecting a reduction in new security purchases relative to the proceeds generated from maturities and sales.
Financing Strategy and Shareholder Returns: The capital structure was heavily influenced by the issuance of convertible notes, with major inflows occurring in 2018, 2020, and 2021. A significant shift in capital allocation occurred in 2021, as expenditures for the repurchase of common stock escalated to 930 million, representing a sharp increase from 245 million in 2020. Debt obligations were managed through periodic repayments of convertible notes, most notably in 2019 and 2021.
Liquidity and Cash Position: The total cash, cash equivalents, and restricted cash balance demonstrated an overall upward trajectory, growing from 1.6 billion at the end of 2017 to 2.2 billion by the end of 2021. This increase in liquidity was sustained through financing activities and the strategic liquidation of marketable securities, which offset the declining trend in net cash provided by operating activities in the final two years of the period.

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