Twitter Says It Aims to Double Revenue by 2023

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Twitter announced today it will double its revenue by 2023 and reach at least 315 million monetizable active users by then as well, according to a Securities and Exchange Commission filing.

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Twitter announced its three long-term goals in connection with its 2021 analyst day, held today.

The company said it would “at least double total annual revenue from $3.7 billion in 2020 to $7.5 billion or more in 2023,” according to the statement.

In addition, it aims to reach at least 315 million monetizable daily active usage or users in Q4 2023, “which represents a ~20% compound annual growth rate from the base of 152 million mDAU reported in Q4 2019, which was the most recently reported mDAU when Twitter first announced this ambition in March of 2020.”

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Twitter said it defines mDAU as people, organizations or other accounts who logged in or were otherwise authenticated and accessed Twitter on any given day through or Twitter applications that are able to show ads, according to the SEC filing.

Finally, the company also reiterated its long-term margin target of mid-teens GAAP (generally accepted accounting principles) operating margin, or 40%-45% adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin.

Earlier this month, Twitter reported its earnings for the fourth quarter of 2020 and beat both earnings per share and revenue estimates, posting a record $1.29 billion in revenue.

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The news was unexpected for some, given that after shutting down Trump’s 89-million-follower account permanently in January following the Capitol insurrection, Twitter’s stock price dropped by 12%, erasing $5 billion from its market capitalization.

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But the company reported year-over-year total revenue growth of 28% to $1.29 billion and earnings per share of $0.38, compared to a consensus EPS estimate of $0.31 and a consensus revenue estimate of $1.19 billion, according to Seeking Alpha.

“2020 was an extraordinary year for Twitter. We are more proud than ever to serve the public conversation, especially in these unprecedented times,” Jack Dorsey, Twitter’s CEO said in the earnings statement. “Our product changes to date are promoting healthier conversations for those who use our service, including advertisers and partners, and we are excited about our plans to continue innovating in 2021.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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