To double its annual revenue by 2023 as planned, Twitter would need an increase from 43.7 billion recorded in 2020 to at least $7.5 billion.
Twitter Inc (NYSE: TWTR) saw a 3.7% gain in its stock after the social media network announced plans to double revenue by the end of 2023. Also in the same year, Twitter hopes to have 315 million monetizable daily active users (mDAUs). In the fourth quarter of 2020, Twitter said that it had 192 million mDAUs.
Twitter announced its long-term plans for revenue and daily active users in a filing with the US Securities and Exchange Commission (SEC) on the 25th of February. According to CNBC, it is the first time Twitter would be settling out long-term goals regarding its revenue and daily users.
Twitter Plans to Double Revenue
To double its annual revenue by 2023 as planned, Twitter would need an increase from 43.7 billion recorded in 2020 to at least $7.5 billion.
In addition, Twitter has plans to double its development velocity by 2023. This means “doubling the number of features shipped per employee that directly drive either mDAU or revenue.”
Furthermore, Twitter added that it aims for a long-term margin target of mid-teens GAAP operating margin, or 40-45% adjusted EBITDA margin.
At the time of writing, Twitter stock is at after-hours trading of $73.93, a 0.88% decline over its previous close of $74.59. Data by MarketWatch revealed that TWTR has been surging over the past months. Over the last year, TWTR has increased by 125.96%. The company has also grown more than 37% since the beginning of January. In addition, the social media giant has surged 60.65% in the last three months and nearly 45% over the past month. In the last five days, Twitter has jumped 3.22%. Twitter currently boasts of a market value of $57.4 billion.
Jack Dorsey Says 2020 Was an “Extraordinary Year” for Twitter
After Twitter reported a better-than-anticipated earnings result for 2020 Q4, the company spiked 13%. Confirming CEO Jack Dorsey’s remark that 2020 was an “extraordinary year” for Twitter, the company recorded $1.29 billion in revenue against $1.18 billion earlier predicted by analysts.
Despite the global economic meltdown that affected several companies as a result of the pandemic, Twitter grew in 2020. In the year, the social media giant jumped about 82%. Twitter also saw an increase in the number of daily active users.
Amid the growing adoption of Bitcoin among public companies, Twitter CEO Ned Segal recently revealed that the company is considering adding BTC to its balance sheet. In an interview with CNBC’s Squawk Box on the 10th of February, Segal said that Twitter has done a lot of “upfront thinking” regarding the matter and would continue to deliberate on it.
In October 2020, Twitter’s sister company Square Inc (NYSE: SQ) said it had invested $50 million in Bitcoin.
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