Twitter Sets New Goals to Increase Revenue and User Growth

Twitter has big plans for the future. Ahead of this year’s virtual investor day, Twitter has announced that this year onwards they will be focusing on three main long term goals that they will accomplish which are user base and revenue growth, and a faster pace of shipping new features across its platform.

The company hopefully looks forward to increasing their annual revenue by at least a double by 2023 which means that they had a revenue of $3.7 billion in 2020 and they expect it to increase to $7.5 billion or more in 2023. Apart from this the company also expects to reach 315 million mDAUs which is Twitter own invented monetized daily activity user’s metric by the same year. However, considering that the increase in mDAUs will only be 20 percent of the compound annual growth rate considering it had a 152 million mDAUs reported in 2019.

This statement backs up the fact that Twitter has a relatively slower growth rate in terms of Active Users, sometimes which can go to be flat lined as well for some time. Last year by the end of 2020, the growth rate of mDAUs were expected to be 193.5 million but could only reach to 192 million instead. The investors of the company do know that Twitter at times does not provide the expected delivery of the metric and sometimes even forms their own user base metric to hide the fact that there was a growth decline of monthly users.

But will Twitter just carry out the same behavior or will it do something to pull itself back up?

Well, the company has put a lot of efforts in bringing forward new features and it believes that from now onwards based on their new features and their newly formed goals they will be able to provide more enhanced and unique features and content which will ultimately increase the user growth. The company has stayed true to their statement of new features and over the span of few months we have seen a relative increase in the introduction of some features. Twitter introduced Fleets which is their version of stories. It also introduced Twitter Spaces, which will allow people to build a group chat which will be audio based and the users can participate in group discussion about a certain topic. Birdwatch was also introduced which gives some users the accessibility to call out information they find incorrect or misguiding and correct it there and then. The newsletter platform Revue also got acquired by the company and is accessible through Twitter now.

The new features will increase user attraction to the app and in response more people will join the platform increasing the user growth. The revenue growth however will need more working on apart from just the advertising factor and the company is making sure to bring fool proof plans for that as well. It plans on bringing subscription product for the platform as well as investigate other areas of monetization, like tipping and various paid consumer-facing features to increase revenue. However, none of this is confirmed and will probably take time to bring increase in the revenue.

All in all, the investors seem impressed with Twitter’s new plans and goals and they do have hopes with the app. After the announcement made by the company their stocks went up by a few percent and are expected to increase more. Meanwhile we hope that Twitter succeeds in fulfilling the goals they have set and we cannot wait to see how well the company will do in the near future.

Read next: Twitter announced a Super Follow Subscription feature, from which creators can charge for exclusive tweets
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