Tesla CEO Elon Musk bared his growth plans for Twitter (NYSE: TWTR) he plans to execute once the proposed acquisition pushes through. The pitch is toplined by a projected US$26.4 billion in revenue by 2028, five times more than its 2021 revenue of US$5 billion, according to an article by The New York Times.
Revenue
On top of the revenue projection, Musk also plans to cut the source away from advertising, eyeing for the business division to contribute less than 50 percent of the topline figure. Ads currently make up around 90% of the company’s revenue.
The Tesla chief plans to replace this revenue vacuum by boosting Twitter’s payments business, targeting the division to contribute US$15 million in revenue for 2023 and grow this to US$1.3 billion by 2028.
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Musk also eyes increasing the average revenue per user to US$30.22 in 2028 from US$24.83 last year.
Subscribers And Project X
Part of the bullish financial targets is increasing the social media platform’s membership base. Musk is targeting to reach 931 million users by 2028. This compares to approximately 217 million users as of 2021.
Twitter Blue is also something the billionaire is looking at as a potential source of revenue boost. Musk is expecting the initiative to reach 69 million users by 2025, then 159 million users by 2028.
Musk also teased a new product called X, which he targets to reach 104 million users by 2028. There are few details bared related to the new product but it is expected to bring in new nine million users by the end of the year.
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Employees And Cash Flows
Also included in the pitch deck is the plan to increase Twitter’s workforce to 11,072-strong by 2025. Approximately, the firm has 7,500 employees currently.
While this is a huge jump from the current number of employees, Musk sees the path as a fluctuating line than a straight path. He targets to push it to 9,225 employees by 2022, then going down to 8,332 employees by 2023.
In addition, stock-based compensation expense is also expected to increase to around US$3 billion by 2028, coming from US$914 million in 2022.
Free cash flow is also expected to grow to US$3.2 billion in 2025 and US$9.4 billion in 2028.
Regarding his proposed Twitter takeover transaction, Musk is facing a US Federal Trade Commission review “to determine whether or not the Tesla CEO purchased the social media company in accordance with antitrust laws.”
Twitter last traded at US$49.80 on the NYSE.
Information for this briefing was found via The New York Times and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
