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  • 07.25.16

Twitter’s earnings report will tell us if it’s growing again

When Twitter disclosed its first-quarter earnings in April, it provided guidance for Q2 that was below Wall Street’s expectations. When the company announces its Q2 results on Tuesday, we’ll learn whether its cautious outlook jibed with how it actually did in the quarter.

But really, the most interesting question about Twitter right now is whether it can get more people using the service. In Q1, its monthly active users reached 310 million, just a skosh more than the previous quarter. We’re about to see whether recent tweaks such as the move to an algorithmic timeline are helping create growth that looks more like a surge than a blip.

Even if they do, Twitter has been pouring effort lately into video deals that, even if they move the needle, will only do so in the future. For instance, in the months to come, it will be streaming games from the NFL as well as the MLB and NHL, and will be working with the NBA on original content. That could add up to a Twitter that feels even more like it’s the one place to go to follow live events. And making that happen is the company’s long-term growth strategy.  

  HM