Jack Dorsey needs to make a good first impression with Wall Street on Twitter's earnings today



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Twitter co-founder and interim CEO Jack Dorsey

The spotlight on Twitter's Q2 earnings call will be on the man who once said he felt like he was punched in the stomach by the company's board.


Twitter co-founder Jack Dorsey, who recently took over as interim CEO, will make his debut on a conference call with Wall Street analysts during the company's second quarter report.

The appearance will be particularly noteworthy as many believe Dorsey could be a lock for the permanent CEO job. We've heard that he's angling for it himself.

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Dorsey is a big name in Silicon Valley, but Wall Street has not had the chance to get to know him very well yet.

He gave up his operational role at Twitter before it became a publicly traded company, and his other full-time job at Square, a digital payments company where Dorsey is CEO, is privately held.


Making a good first impression with Wall Street will be key if Dorsey hope to have a shot at the top job.

Investors will be on the lookout for any comments by Dorsey about whether he considers himself a candidate for the CEO job, following the resignation of Dick Costolo at the start of the month .

Besides that though, Dorsey might not be able to say very much. Twitter's performance in the second quarter is expected to be mediocre. And because Dorsey is the interim CEO, he may be limited in what he says about Twitter's long-term vision or strategic plans.

"It would be difficult to imagine too much that he might say beyond a board level view of the company," said Brian Wieser, an analyst with Pivotal Research Group.

"I think it would be unlikely for someone who is not the CEO to somehow establish a new vision for the company, so I wouldn't expect to hear that," he said.


One of the most pressing questions on Twitter's conference call will be the status of the search for a new CEO.

Investors are hungry for information on the search, including details about timing and the board's view on internal versus external candidates.

Dorsey may be a contender himself, and a source close to the matter has told Business Insider that revenue boss Adam Bain is currently the board's top pick. Still, few expect an announcement of a new CEO on Tuesday. It's too early in the process, especially if the board is committed to making a full assessment of outside candidates.

The actual numbers in Twitter's second quarter earnings report are not expected to create much enthusiasm among investors, as the social networking company continues to struggle to expand the size of its audience.

The Internet company is expected to post revenue of $481.1 million. That's up 54 percent year-over-year but a sharp deceleration from the company's previous growth rates. In the first quarter, for instance, Twitter's revenue increased 74 percent year-on-year. Twitter is expected to continue losing money, thought on an adjusted basis analysts expect it to post EPS of 4 cents.


Twitter's total number of monthly active users are expected to reach 310 million, a scant 2.6 percent increase from the 302 million that Twitter had in the first quarter.

We'll be covering Twitter's earnings after the closing bell on Tuesday, so check back.

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