From: Tazia Smith Sent: 4/29/2014 4:55:26 PM To: [email protected] CC: Vinit Sahni I; Nav Gupta [i ]; Paul Morris corm Vahe Stepanian Subject: Twitter down - 9% on earnings, lowest price since IPO. Earnings call to begin shortly, lock-up expiry on Tuesday (5/6) ICI Classification: Confidential Jeffrey - As you know, you own 1000 shares of TWTR at $26 (+512.7k) TWTR shares are at their lowest level since the stock's IPO (presently $38.70, vs a close of $42.62) Conference call begins at 5pm ET Twitter reported a better-than-expected top and bottom line for 01, however, Monthly Active User (MAU) growth was shy of whisper expectations. Investors are focused on valuation (still high at current stock price - DB's price target of $65 implies 65x EV/EBITDA vs. Facebook which is —12x), and stock action has reflected the forthcoming headwind: -474mm shares come out of 180 lock-up as of next Tuesday, 5/6 (includes Execs and early stage PE). Top and bottom line beat (like last quarter) but user growth is just inline with consensus ests and disappoint vs expectations: Revenues Better - $250mm vs $241.5mm Earnings Better - $0.00 vs ($0.03) But audience growth (Monthly Active Users) just inline - disappointing vs. whisper MAU: Total 255M vs SA 256.8M and 241 M in 04 - represents y/y growth of +25% Mobile 198M vs 184M in Q4 US 57M vs SA 57.0M and 54M in Q4 International 198M vs SA 200.0M and 187M in 04 (source: Streetaccount.com) Guidance inline/better: 02 Guidance inline EBIDGA of $35-30mm vs $28mm FY Guidance EBIDA of $180mm-205mm vs prior $150-180mm (cons 181mm) TWTR antra-Day/Aftermarket Price History CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 123761 CONFIDENTIAL SDNY_GM_00269945 EFTA01461612