Elon Musk aims to five-fold Twitter revenue to $ 26.4 billion by 2028
Musk, the richest man in the world, gave investors a presentation in recent days in which he outlined his grandiose – some might say incredible – plans for Twitter and his financial goals. The New York Times got the presentation. Here’s a look at what Musk sees for the social media service for years to come.
Revenues quintupled to $ 26.4 billion by 2028.
In his presentation, Musk said he would increase Twitter’s annual revenue to $ 26.4 billion by 2028, up from $ 5 billion last year.
Reduce Twitter’s reliance on advertising to less than 50% of revenue.
Under Musk, advertising would drop to 45% of total revenue, down from about 90% in 2020. By 2028, advertising would generate $ 12 billion in revenue and nearly 10 billion subscriptions, according to the document. Other revenue would come from activities such as data licensing.
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Produce $ 15 million in revenue from a payment business.
Twitter would bring in $ 15 million from a payment business in 2023, according to the document, which will grow to about $ 1.3 billion by 2028. The company’s payment business today, which includes tips and shopping, is negligible. . It has been speculated that Musk may introduce payment capabilities on Twitter as he helped popularize PayPal, the digital payment service.
Increase your average revenue per user by $ 5.39.
With all of these changes, Musk expects to be able to increase Twitter’s average revenue per user – a key metric for social media companies – to $ 30.22 in 2028 from $ 24.83 last year, according to the document.
Reach 931 million users by 2028.
Musk predicts that the total number of Twitter users will grow from 217 million at the end of last year to nearly 600 million in 2025 and 931 million in six years. Most of this growth will come from Twitter’s ad-supported business, including Twitter Blue, for which users pay $ 3 a month to personalize their experience on the app. According to the pitch deck, Musk expects 69 million Twitter Blue users by 2025 and 159 million by 2028.
Have 104 million subscribers for a mysterious X by 2028.
Included in Musk’s total user estimates are those who appear to be subscribers to a new product called X, which would have 104 million users in 2028, according to the document. The document didn’t detail what X Subscribers was, but Musk hinted at introducing an ad-free experience on Twitter. The X Subscribers product hits the field in 2023, with 9 million users expected in its first year.
Hire 3,600 employees – after losing hundreds.
According to the document, by 2025, Musk expects Twitter to have 11,072 employees. It would be around 7,500 today.
But in the meantime, Musk expects the number to fluctuate, climbing to 9,225 employees in 2022, then dropping to 8,332 in 2023 before rising again. Musk is likely to eliminate workers as part of acquiring him, before hiring new engineering talent, a person familiar with the situation said. Equity-based clearing costs are also projected to increase to just over $ 3 billion by 2028, from $ 914 million in 2022.
Increase free cash flow to $ 9.4 billion.
Twitter wants to add about $ 13 billion in debt as part of Musk’s acquisition plan. But it expects to pay off that debt as free cash flow – a measure of how much money a company has to service its debt – is set to grow to $ 3.2 billion in 2025 and $ 9.4 billion in 2028. , according to the pitch deck. According to the document, free cash flow would also increase as expenses and operating costs increase.
This article originally appeared in
The New York Times.