Signage at Twitter headquarters in San Francisco, California, U.S., on Monday, July 19, 2021. Twitter Inc. is scheduled to release earnings figures on July 22. “To the extent material, please disclose the methodology used in calculating these figures and the underlying judgments and assumptions used by management,” the SEC said in the letter to Agrawal, referring to assumptions that Twitter included in its annual report. The letter was made public on Wednesday.
In response, Twitter’s lawyers told the SEC on June 22 that it “already adequately discloses the methodology” that it uses. The company said that it randomly selects thousands of accounts to be reviewed by people each quarter and has done so for many years.
The SEC also posted a July 27 letter noting that it had concluded its review. “We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff,” the agency wrote.