Elon Musk's eight major goals for Twitter! Increase revenue and user count, launch mysterious X product

In the SEC filing for Elon Musk's acquisition of Twitter, multiple companies from the cryptocurrency circle were involved in equity financing, sparking discussions in the community. Today, The New York Times even publicly disclosed Twitter's plans and financial goals presented to investors, showcasing Musk's ambitious vision.

This article is sourced from The New York Times. For any uncertainties, please refer to the original text.

Elon Musk's Twitter Development Goals

1. Twitter Revenue to Increase 5-Fold in Six Years

Elon Musk claims that by 2028, he aims to increase Twitter's annual revenue from last year's $5 billion to $26.4 billion.

2. Reduce Twitter's Reliance on Advertising Revenue to Below 50%

In 2020, advertising revenue accounted for about 90% of Twitter's total revenue. Musk expects to reduce this to around 45%. By 2028, advertising will generate $12 billion in revenue, while subscription revenue will reach nearly $10 billion. Other income will come from businesses such as data licensing.

3. Continuously Increase Revenue from Payment Services

In 2023, payment services are projected to bring in $15 million for Twitter, growing to approximately $1.3 billion by 2028. Twitter's current payment services include tips and shopping, but the revenue generated is minimal. Therefore, it is speculated that Musk may introduce digital payment services for Twitter.

4. Increase Average Revenue Per User by 20%

Average revenue per user represents the profit an operator receives from each user within a period of time. Musk expects to increase Twitter's average revenue per user from $24.83 last year to $30.22 by 2028.

5. Surpass 900 Million Users in Six Years

Musk aims to increase Twitter's total user base from 217 million at the end of last year to nearly 600 million by 2025 and 931 million by 2028. Most of the growth will come from Twitter's ad-supported business, including Twitter Blue users paying $3 per month to customize their experience.

Twitter Blue users are expected to reach 69 million by 2025 and 159 million by 2028.

6. Launch a New Product Named X

Musk has not disclosed the functionality of this product yet, but it is expected to start fundraising in 2023, attracting 90 million users in the first year and reaching 104 million users by 2028. Additionally, Musk has hinted at Twitter introducing an ad-free service.

7. Hire a Large Number of Employees after Hundreds of Layoffs

Musk expects Twitter to have 11,072 employees by 2025, currently around 7,500. The total number of employees is expected to fluctuate significantly, with sources suggesting that Musk may lay off employees before recruiting new engineering talent.

8. Substantially Increase Free Cash Flow

As part of Musk's acquisition plan, Twitter will increase its debt by about $13 billion. However, it is projected that Twitter's free cash flow will grow to $3.2 billion in 2025 and reach $9.4 billion by 2028, which will be used to repay debt.

Furthermore, even as operating expenses and costs increase, free cash flow is expected to grow in tandem.

Note: Free cash flow, as the name suggests, is the cash flow that a company can use freely. It is the surplus obtained by subtracting capital expenditures and taxes required to maintain existing operations from the cash flow generated from operations. Companies can use this cash for growth and expansion, shareholder dividends, debt repayment, or to reserve for potential economic downturns in the future.