Twitter will release its Q2 2014 earnings report tomorrow after the closing bell and while the market will be looking for growth in revenue, a strong earnings per share (EPS) number and a boost in ad sales, it’s only one metric that really matters: monthly active users (MAU).
In April’s Q1 2014 report Twitter beat analyst expectations with $250 million in revenues but the softer-than-hoped 255 million MAU number – up just 14 million since Q4 2013 – led to a stock sell-off with the price reaching new all-time lows in May.
Shares have rebounded somewhat since then, but Wall Street will be looking for some serious user growth numbers from Twitter following what was generally perceived as a successful World Cup campaign. Analysts are expecting between 260 and 267 million MAUs for Twitter in Q2 2014, and anything less than that could see a repeat of May’s descent.
Frankly, I think anything below 270 million MAU will be disappointing for Twitter after the World Cup.