How Musk Plans To Quintuple Twitter’s Sales in Four Years

Big Picture

It’s fair to say Elon Musk has lofty goals when it comes to his $44 billion acquisition of Twitter (TWTR). After the New York Times (NYT) published a pitch deck that he’s showing to potential investors, details are coming into focus. In terms of revenue, Musk says he can quintuple Twitter’s annual sales from $5 billion in 2021 to $26.4 billion by 2028.

In order to get there, Musk says he will reduce the social media platform’s reliance on ad revenue, which now accounts for 90% of sales. The plan would be to get closer to 45%, with ad revenue of $12 billion in 2028, and subscription fees generating $10 billion. Data licensing fees would represent another key source of revenue.

PayPal Connection

Given Elon Musk played a role in popularizing digital payment service PayPal (PYPL), it makes sense he reportedly sees upside in growing Twitter’s payment system. Twitter’s payments business is currently negligible, but includes offerings like shopping and tipping. The goal is to turn it into a $15 million business by next year, growing to $1.3 billion by 2028.

Musk’s pitch deck also lays out key benchmarks in terms of things like average revenue per user, which is considered a key metric for social media companies. He plans to boost this value to $30.22 by 2028, up from $24.83 in 2021. Musk says the $13 billion in debt added to Twitter’s balance sheet as part of the buyout plan will be paid off with added cash flow. He anticipates $9.4 billion in free cash flow by 2028.

X Marks the Spot

Part of Musk’s plan relies on growing Twitter’s user base to 931 million by 2028, up from what was 217 million at the close of 2021. The majority of those users will be on Twitter’s ad-supported platform, as well as Twitter Blue, which charges users $3 per month for a customized experience. Musk predicts Twitter Blue’s subscriber count will more than double in the next six years.

One of the most intriguing aspects of Musk’s plans is something called X. While it’s unclear exactly what X is all about, the plan is to reach 104 million users by 2028. Its potential launch is slated for next year. A detailed pitch deck of this nature certainly doesn’t fit within 280 characters, but Musk is undoubtedly hoping it helps craft the perfect tweet.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender