Social media giant Twitter Inc. has said that it wants to double its annual revenue to $7.5 billion by 2023 and has expectations of increasing its user base by an average of almost 20% each of the next three years.
Twitter has a goal of piling up 315 million daily active users by the end of 2023, this would be an almost 64% increase from 192 million in Q4 2020. There was as much as a 12% jump in shares to record an intraday high of $80.75 as the market opened Thursday.
In conjunction with the San Francisco-based company’s first Analyst Day since 2014, the business goals were announced Thursday. Numerous executives, including Jack Dorsey, CEO of Twitter, are expected to present updates on various parts of the company’s business during the event.
Targeted advertising, which provides Facebook and Google a huge share of their revenue, sees Twitter make about 86% of its annual revenue as well. However, Twitter’s earnings in the crowded space are a sliver compared to Facebook and Google. But Twitter executives have argued that by building products for smaller clients, the company has a lot of room to increase its sales. The company is also seeing better days because of a rise in digital advertising the past year as more consumers shopped online during the pandemic. And Twitter is considering a subscription business as one of the other ways to generate revenue.
In 2021, the shares have jumped almost 33% through Wednesday’s close. The company’s decision to ban then-U.S. President Donald Trump from the service in early January was expected to hurt business or stunt user growth, but Twitter said growth in January was around 20%, which is consistent with previous quarters.
The improvement in Twitter’s pace when it comes to improving the service was the third goal outlined Thursday. The company wants to “double development velocity” of product shipments that directly influence revenue or user growth. In practice, that means “doubling the number of features shipped per employee,” the company said in its filing, though it didn’t specify the current rate, according to Bloomberg.