THE Elon Musk’s plans for Twitter they are majestic. Almost exaggerated, one would say once analyzed. Yes, because after the acquisition there followed rumors and anticipations on the real intentions of the richest man in the world – as well as patron of Tesla and SpaceX – to make the social network attractive both for users (change key?) and for investors. Of course “I don’t care about making money“, Musk wants to flip Twitter like a sock to make it a money machine. Understandable, given how much he had to shell out to buy it, as confirmed by the New York Times who came into possession of the documentation presented to the stakeholders by the new owner in recent days with all the objectives to be achieved between now and 2028.
Despite recently published strong financial results, Twitter can and should do better. Much better. Elon Musk’s goal is to quintuple revenues, reaching 26.4 billion by 2028. They were 1.2 billion in Q1 2022, they were 5 billion in 2021. Definitely an ambitious plan, which risks also going through a staff review.
INDEPENDENCE FROM ADVERTISING (OR ALMOST)
There’s one thing Musk doesn’t like about Twitter (if only one!): The fact that a service like Twitter Blue (paid) has advertising is wrong. This is just one example of how the platform is should emancipate itself by reducing its dependence on advertising: the goal is to get below 50% of revenue, probably at 45% (-90% compared to 2020). This is the situation expected for 2028:
- advertising: revenue of $ 12 billion
- subscriptions: $ 10 billion
- other revenue: miscellaneous activities, including data licensing
Payment activity within the platform? Possible, with forecasts of $ 15 million in revenue in 2023, up to $ 1.3 billion in 2028. In short, drawing inspiration from PayPal (co-founded by Musk) could benefit the company.
PI REVENUE PER USER
The goal in this case is to get to $ 30.22 per user in 2028against $ 24.83 in 2021.
Currently there are 229 million users, 15.9% more than in 2021. By 2028, according to Musk, they will have to be 931 millionwith the intermediate goal of 600 million in 2025. An important contribution will come from Twitter Blue: in this regard, subscribers will have to grow to 69 million by 2025 and 159 million by 2028.
X: here is Musk’s mysterious project for Twitter, which according to the plans of the new owner in 2028 will count 104 million subscribers9 million already in 2023. Could it be the completely ad-free version of the platform?
On the one hand the fear of cuts, on the other the idea of to hire 3,600 employees. Today there are 7,500, by 2022 they will be (or should be) 9,225, in 2023 8,332 (down) and in 2025 11,072.
CASH FLOW AVAILABLE
Finally, a purely financial figure: 13 billion of debt will be added which will be repaid in a short time because the available cash flow will increase to 9.4 billion dollars in 2028.