We seek to foster a broad and engaged consumer community, and we encourage world leaders, government officials, celebrities, athletes, journalists, sports activities groups, media retailers and brands to make use of our products and services to precise their views to broad audiences. Our success is dependent upon our skill to offer customers of our products and services with distinctive and interesting content, which in turn relies on the content contributed by our users. If our users or content partners don’t continue to contribute content material or such content material isn’t considered as unique or participating by different users, we could expertise a decline in the variety of users accessing our services and user engagement, which might end result within the loss of content material partners, advertisers, platform companions and income. We believe that certainly one of our competitive advantages is the standard, quantity and real-time nature of the content on Twitter, and that entry to unique or actual-time content is one in all the principle reasons customers visit Twitter.
If we fail to grow our user base, or if consumer engagement or advert engagement on our platform decline, our revenue, business and operating outcomes could also be harmed. Our monetary performance has been and can continue to be significantly decided by our success in rising the number of users and growing their general stage of engagement on our platform as effectively because the number of advert engagements; nonetheless, we count on revenue growth will lag behind person development. The dimensions of our consumer base and our users’ level of engagement are important to our success. In that event, the market value of our widespread stock may decline, and you may lose half or all your investment. We had 319 million common MAUs within the three months ended December 31, 2016, representing a 4% enhance from 305 million common MAUs within the three months ended December 31, 2015. DAU for the three months ended December 31, 2016 grew 11% yr over 12 months.
These non-GAAP monetary measures aren’t primarily based on any standardized methodology prescribed by GAAP and are usually not necessarily comparable to similarly-titled measures introduced by different corporations. These non-GAAP monetary measures shouldn’t be thought-about in isolation from, or in its place for, monetary information prepared in accordance with GAAP. We outline Adjusted EBITDA as net loss adjusted to exclude stock-based mostly compensation expense, depreciation and amortization expense, curiosity and other expenses, provision (profit) for revenue taxes and restructuring costs, if any. See the section titled “Non-GAAP Financial Measures” below for additional data and a reconciliation of web loss to Adjusted EBITDA and internet loss to non-GAAP internet income (loss). There are quite a few limitations related to the use of those non-GAAP monetary measures moderately than internet loss, which is the nearest GAAP equal of these financial measures. We additionally use these measures to determine budgets and operational goals for managing our enterprise and evaluating our efficiency. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue.
The FTC investigation was the result of two separate incidents by which unauthorized intruders obtained administrative passwords of certain Twitter staff. In one of the incidents, the intruder accessed the employee’s administrative capabilities to fraudulently reset various person passwords and submit unauthorized Tweets. For example, regulation referring to the final Data Protection Regulation has been adopted by European legislative bodies that can be effective in May 2018 and will embrace extra stringent operational necessities for entities processing personal data and significant penalties for non-compliance. In March 2011, to resolve an investigation into various incidents, we entered into a settlement agreement with the Federal Trade Commission, or FTC, that, amongst other things, requires us to establish an data security program designed to protect non-public shopper info and also requires that we obtain biennial independent safety assessments.
In 2016, the company granted PRSUs to sure of its govt officers and established the 2016 annual performance goals for these PRSUs. The full intrinsic values of stock choices exercised within the years ended December 31, 2016, 2015 and 2014 have been $41.4 million, $337.2 million and $872.Eight million, respectively. The expected to vest options are the results of applying pre-vesting forfeiture fee assumptions to unvested options outstanding. The number of shares that ultimately vest for 2016 was estimated to be 70 p.c of the annual goal quantity, based on the Company’s performance, subject to the Compensation Committee of the Board of Director’s approval. The PRSUs will vest primarily based on the Company’s attainment of the annual financial efficiency targets and the executives’ continued employment via the vesting date, roughly one year. The aggregate intrinsic worth in the desk above represents the difference between the truthful worth of common inventory and the exercise worth of excellent, in-the-cash stock choices.
The dangers and uncertainties described beneath will not be the one ones we face. If any of the risks really happens, our business, financial condition, working results, cash flows and prospects may very well be materially and adversely affected. You should carefully consider the dangers and uncertainties described under, along with all of the opposite information on this Annual Report on Form 10-K, including the part titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated monetary statements and related notes, before making a choice to spend money on our common stock.
The company has entered into varied non-cancelable working lease agreements for certain places of work and knowledge middle services with contractual lease periods expiring between 2017 and 2028. Through the yr ended December 31, 2016, SEO Services For Contractors the corporate entered into a number of sublease agreements for the workplace house that the company not fully utilizing. As well as, the credit score facility contains restrictions on payments including money funds of dividends. This modification to the revolving credit score agreement additionally offers that if the Company’s total leverage ratio exceeds 2.5:1.0 and if the quantity outstanding underneath the credit score facility exceeds $500.Zero million, or 50% of the amount that could be borrowed below the credit facility, the credit facility will become secured by considerably all the Company’s and sure of its subsidiaries’ assets, subject to restricted exceptions. As of December 31, 2016, no quantities were drawn under the credit facility. The revolving credit score agreement was amended in September 2014 to extend the quantity of indebtedness that the corporate could incur and enhance the quantity of restricted payments that the corporate might make.