With earnings season in full swing, the week is jam-packed with reports from major companies, including a slew of important earnings releases in tech. Three reports from tech companies worth watching on Wednesday are those from Facebook (NASDAQ:FB), PayPal (NASDAQ:PYPL), and Microsoft (NASDAQ:MSFT).
Ahead of these three companies' earnings reports, here's a quick overview of some of the key metrics investors will want to watch on Wednesday:
Investors will be watching the social network's growth in total revenue. Revenue growth has decelerated recently, with third-quarter revenue rising 33% year over year -- down from 49% growth in the first quarter of 2018.
Management said it expects further meaningful deceleration in its year-over-year revenue growth in its fourth quarter. Analysts on average are expecting the company's revenue to come in at $16.4 billion, representing 26.4% year-over-year growth.
The financial-technology company impressed investors with results for its most recent quarter, reporting better-than-expected revenue and earnings per share. In addition, the company increased its revenue outlook for the full year. Can PayPal keep up its strong momentum?
In addition to studying the company's revenue and earnings for its fourth quarter, investors should look for key metrics on the fast-growing peer-to-peer payment app Venmo. PayPal CEO Daniel Schulman said in the company's third-quarter earnings call that the app had reached a "tipping point" in its monetization: 24% of Venmo users had participated in a monetizable action, he said. Did this important metric rise again in Q4?
For reference, analysts are expecting PayPal to report fourth-quarter revenue of $4.24 billion and non-GAAP EPS of $0.67.
A key item for investors when Microsoft reports results on Wednesday is growth in its commercial cloud revenue. This category, which encompasses the software company's revenue from Office 365 commercial, Azure, and Dynamics 365, includes some of its most sustainable long-term growth drivers.
Microsoft's commercial cloud revenue increased 47% year over year in the company's most recent quarter. This put commercial cloud revenue at $8.5 billion, accounting for nearly a third of the company's total revenue.
Investors will also want to check on Azure, which is integral to the company's momentum in commercial cloud revenue. The cloud-computing business saw its revenue rise 76% year over year in Microsoft's first quarter of fiscal 2019.
For the company's overall revenue and EPS, the consensus forecast is for $32.5 billion and $1.09, respectively.
Facebook, PayPal, and Microsoft all report their latest quarterly results after market close on Wednesday, Jan. 30.t
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook and PayPal Holdings. The Motley Fool owns shares of Microsoft. The Motley Fool has a disclosure policy.