Twitter
Inc.
is scheduled to report fourth-quarter results before the market opens Thursday. Here are the key points to watch:
EARNINGS FORECAST: Analysts polled by Thomson Reuters expect Twitter to earn an adjusted 14 cents a share, compared with an adjusted 16 cents a share a year ago. Adjusted results usually exclude stock-based compensation and acquisition expenses, and other items. This could be the first quarter in which Twitter reports a profit under U.S. accounting rules.
REVENUE FORECAST: Twitter is expected to record $686.1 million in revenue, down 4.3% from the previous year, according to Thomson Reuters estimates.
WHAT TO WATCH:
USER GROWTH: Twitter’s user base grew 1.2% in the third quarter, after shrinking slightly in the second. For the fourth quarter, analysts are watching to see if the return to growth was a blip or the start of a trend. Any change to how Twitter reports its user base will be notable; the company could for the first time disclose its number of daily users, as
Facebook
Inc.
and
Snap
Inc.
do. Analysts also want to know whether Twitter’s decision to bump up the length of tweets from 140 to 280 characters boosted engagement.
RUSSIAN PROPAGANDA: Twitter came under fire during the quarter for its handling of disclosures about alleged Russian efforts to spread propaganda on the social network. In response, Twitter has said it is working on new tools to help it detect automated account activity, and limit the ability of users to perform coordinated campaigns across multiple accounts. Analysts and investors want to know how big an effect these efforts will have on Twitter’s number of users, and its bottom line if the company has to ramp up hiring to monitor activity.
STRATEGIC DIRECTION: Twitter operating chief
Anthony Noto
announced in January he was leaving to become chief executive of the online lender Social Finance Inc. At Twitter, Mr. Noto headed video efforts—a critical area that had been growing. With his departure, analysts will be parsing any hints at changes to this strategy.
Write to Georgia Wells at Georgia.Wells@wsj.com
