Twitter shares take flight as it unveils plan to double revenue by 2023
Shares in Twitter pushed eight per cent higher this afternoon after the social media platform said it plans to double its annual revenue to at least $7.5bn (£5.3bn) over the next three years.
Announcing a string of long-term goals ahead of its analyst day today, the company also said it aims to reach 315m monetisable daily active users by the fourth quarter of 2023.
This would represent a compound annual growth rate of roughly 20 per cent from its base of 152m mDAU – a metric that refers to the number of users who can view ads — reported in the fourth quarter 2019.
Twitter also said it will double its development velocity by 2023, meaning it will double the number of features shipped per employee that directly drive either user numbers or revenue.
The ambitions, which mark the first time Twitter has set long-term growth goals, come as the company looks to find new ways of generating revenue from its users.
Boss Jack Dorsey has said his firm will explore a number of options, including a subscription service and tiered payments for additional features.
The San Francisco-based company had a turbulent year in 2020 as its platform was dragged into political controversies surrounding former US President Donald Trump.
Twitter posted record revenue of $1.3bn in the fourth quarter, taking its total revenue for the year to $3.7bn.
User numbers increased 27 per cent year on year to reach 192m, though this fell short of analyst targets and the company warned growth would slow in the coming quarters.