EFTA01374594.pdf

From: Vahe Stepanian (DEUTSCHE BANK SECURI)[- Sent: 7/29/2015 1:52:22 PM Subject: (BN)Twitter Shares Slump as Executives Say Growth Will Take Tim (BN) Twitter Shares Slump as Executives Say Growth Will Take Tim e (1) This has been prepared solely for informational purposes. It is not an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. It is based on information generally available to the public from sources believed to be reliable. No representation is made that it is accurate or complete or that any returns indicated will be achieved. changes to assumptions may have a material impact on any returns detailed. Past performance is not indicative of future returns. Price and availability are subject to change without notice. Additional information is available upon request. Twitter shares slump as Executives say Growth will Take Time (1) 2015-07-29 00:19:03.463 GMT (updates with comment from Dorsey in eighth paragraph.) By Sarah Frier (Bloomberg) -- Twitter Inc. executives had a clear message for investors on Tuesday: we have a lot of work to do, and don't expect great progress anytime soon. After reporting quarterly sales that topped estimates, interim chief Executive officer lack Dorsey and chief Financial Officer Anthony Noto struck a critical tone, saying user growth won't improve until the social -media company reaches a mass market -- something that will take a mixture of product improvements and marketing. The company's efforts so far have had minimal success, they said. Shares dropped 11 percent in extended trading, after climbing as much as 12 percent following the earnings release. As Dorsey works to update Twitter's offerings to attract a broader range of users, its sales team has been making deals -- such as one with Google Inc. -- to help advertisers use the site more effectively. while Noto said the company is adding marketing clients, it doesn't expect to see "sustained, meaningful" growth in monthly users for a considerable period. users of the main application rose by just 2 million from the prior quarter -- a gain of less than 1 percent. "Investors demand a re-acceleration of user growth," said Paul Sweeney, an analyst at Bloomberg Intelligence. "we did not see that this quarter to any notable degree." The stock dropped as low as 531.90 in late trading. Before the report, shares of San Francisco-based Twitter rose 5.3 percent to $36.54 at the close in New York. They've gained 1.9 percent this year. CEO Search Former Twitter CEO Dick Costal° was replaced this month on an interim basis by co-founder Dorsey, who also runs Square Inc., a mobile-payments company. Twitter is conducting a search for a permanent CEO, and has ruled out Dorsey as long as he stays full time at Square. On Tuesday, Dorsey said there was no update on the search for a new leader. when asked if he wanted the job, he declined to answer. "I'm not focused on answering that question," he said in an interview. "I want to make sure I'm doing whatever it takes to make Twitter successful." He also dodged a question about whether he would remain CEO of Square. In the second quarter, revenue rose 61 percent to S502.4 million, the social -media company said Tuesday in a statement. That exceeded analysts' average projection for $481.9 million, according to data compiled by Bloomberg. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0069357 CONFIDENTIAL SDNY_GM_00215541 EFTA01374594