Stock-Based Compensation at Twitter
Synopsis
"Olivia Nash, an analyst at leading hedge fund BlueShark Capital Management, sat back and popped open a fresh can of Kiwi LaCroix as she looked out the pristine glass window in her office. Olivia was part of BlueShark’s technology sector coverage team, having been with the firm since completing her MBA five years ago. She had just finished listening to the hour-long earnings call for Twitter’s Q4 2017 results.
Was Twitter doing well? That depended on which numbers she chose to believe. According to Generally Accepted Accounting Principles (GAAP), Twitter had recorded a $108M net loss for 2017. But on the earnings call, CEO Jack Dorsey and CFO Ned Segal had emphasized a slightly different and much better-looking metric: non-GAAP net income of $329M. This adjusted version of net income was a measure Twitter had defined itself when it first went public in 2013. The biggest difference between the two was that Twitter’s non-GAAP net income stripped out stock-based compensation expense."
- Copyright:
- 2018 President and Fellows of Harvard College
Book Details
- Book Quality:
- ISBN-13:
- Publisher:
- Harvard Business School Publishing
- Date of Addition:
- 2019-05-16T16:48:45Z
- Language:
- English
- Categories:
- Usage Restrictions:
- This is a copyrighted book.