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Twitter on Thursday announced ambitious goals to double both its user base and revenue over the next two years, milestones its chief financial officer said he believes the company is more than capable of meeting.
The social media company said it is looking to increase the number of daily active users to 315 million, from 152 million at the end of 2019, and reach $ 7.5 billion on the top line, from 3. $ 7 billion in 2020, by the end of 2023.
Twitter shares hit new highs after the announcement, rising more than 3% despite the broader tech sector having suffered its worst day of trading since October.
After the close, Twitter CFO Ned Segal told CNBC’s Jim Cramer that the forecast reflected the company’s optimism about its future performance.
“We can give big goals like that because we have great confidence in our strategy,” he said in an interview with “Mad Money”. “We’ve executed a lot faster and we have a clear path ahead of us with tons of people still not using Twitter and over $ 150 billion of addressable market for digital ads that can hit Twitter.”
The goals are aggressive coming out of the coronavirus pandemic. To meet them, Segal said Twitter will focus on accelerating the release of new products and features, helping to attract new users and even develop a new subscription model. The company recently announced the acquisition of the Revue newsletter platform to enable creators to publish and monetize editorial newsletters.
Twitter, valued at $ 59.5 billion, held an analysts day earlier Thursday to reveal its new outlook and new products. Management also showcased new features, some of which already exist elsewhere in the social media world, which are expected to roll out in the future.
Features tested include Super Follow subscriptions, where subscribers can pay for access to exclusive content; Microcommunities, where groups can be formed around a topic, and a new security mode to allow automatic blocking and deactivation of abusive or fragmentary accounts.
Following the growing success of the Clubhouse audio chat room app, Twitter has also released its own feature called Spaces.
“It feels like a natural extension of where we started with texts. We’ve added images, videos, live videos, audio tweets and now you can come in … create a space and have a conversation. D ‘Other people can join you and others can listen to you, “Segal said.” People can tweet alongside. It will be a great experience. “
While closures and restrictions on coronavirus-related activities have been particularly tough on physical businesses, Twitter’s service, which is a heavy advertising business, has also seen sales slow.
Twitter saw mid single-digit growth in 2020, which followed consecutive years of double-digit sales growth. The company reported $ 3.7 billion in revenue that year, up 7.4% from $ 3.46 billion in 2019. While costs and expenses increased last year, Twitter also reported a loss of $ 1.14 billion, its first annual loss since 2017.
As for the current quarter, Twitter expects double-digit revenue growth from the quarter last year. The company provided revenue forecasts of between $ 940 million and $ 1 billion.
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