UPDATED: Twitter revealed new long-range targets for the business ahead of its investor day presentation Thursday — projecting that it will at least double total annual revenue and daily users over a four-year span.
Per a regulatory filing, Twitter expects annual revenue to grow more than twofold, from $3.7 billion in 2020 to $7.5 billion or more in 2023. In addition, the social network said it is projecting at least 315 million monetizable daily active users in Q4 2023, representing an approximately 20% compound annual growth rate from 152 million mDAU reported in Q4 2019.
Shares of Twitter popped more than 10% in early trading Thursday on the projections — to new all-time highs. The stock ended the day up 3.7%, to a record $74.59 per share, amid a broader decline in financial markets.
Twitter also set a goal to double “development velocity” by the end of 2023, which means doubling the number of features shipped per employee that “directly drive either mDAU or revenue,” the company said in the filing.
For the fourth quarter of 2020, Twitter reported 192 million monetizable DAUs worldwide for Q4 2020, up from 187 million in Q3 amid the turmoil of the 2020 U.S. election, and topped Wall Street financial expectations. For the current quarter, the company said it expects year-over-year mDAU growth of 20%, coming after the permanent ban in January of former president and ex-Twitter power-user Donald Trump.
Twitter defines its proprietary mDAU metric as the average number of “people, organizations or other accounts who logged in or were otherwise authenticated and accessed Twitter on any given day through twitter.com or Twitter applications that are able to show ads.” The company introduced the mDAU measure with its Q4 2018 results, telling investors that it believes that best reflects its goals of driving user value and monetizing usage.