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Twitter, Inc. Earnings: What to Watch

Twitter (NYSE: TWTR ) is set to report its second-quarter earnings on July 27, just one day after social-network juggernaut Facebook (NASDAQ: FB) . Important questions loom ahead of the release: Will Twitter's recent return to user growth persist? Can Twitter charge high-enough premiums for its ads in a Facebook-dominated digital ad market?

But one hot topic -- Twitter's revenue headwinds -- will likely rise above these lingering concerns when the company reports second-quarter results. Here's why investors should check on Twitter's revenue, and look for insight into what to expect from the key metric going forward.

Twitter headquarters. Image source: Twitter.

Twitter's recent revenue trajectory is worrying. After decelerating substantially in 2016, Twitter's year-over-year revenue-growth rate officially turned negative in the first quarter of 2017. Revenue was down 8% year over year. Twitter recently blamed its revenue headwinds on increasing competition for digital ad spending, as well as Twitter's move to reprioritize its revenue products.

Facebook is likely a primary culprit in the more competitive digital-advertising space that Twitter cites. Facebook's advertising revenue has been skyrocketing...