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Twitter Surges After It Forecasts Doubling Revenue to $7.5 Billion by 2023

Twitter says it plans to have 315 million daily active users, or those than can view ads, by 2023.

Twitter Inc.  (TWTR) - Get Twitter Inc. Report shares surged Thursday after the micro-blogging website said it plans to double its annual revenues by 2023.

In a Securities and Exchange Commission filing published Thursday, ahead of its annual investor day conference, Twitter said revenues can rise from $3.7 billion in 2020 to more than $7.5 billion by 2023 as daily active users rise to 315 million. The group also repeated its aim of targeting an adjusted EBITDA margin of between 40% and 50%. 

 Earlier this month, Twitter said it had 192 million average monetizable daily active users, its term for the number of daily users who can view ads, compared with 152 million a year ago. It also forecast current quarter revenue to come in as high as $1.04 billion.

Twitter shares were marked 11.4% higher in early trading following release of the SEC filing to change hands at $80.00 each, a move that would extend the stock's six-month gain to around 95%.

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"2020 was an extraordinary year for Twitter. We are more proud than ever to serve the public conversation, especially in these unprecedented times," CEO Jack Dorsey said after the Q4 earnings release. "Our product changes to date are promoting healthier conversations for those who use our service, including advertisers and partners, and we are excited about our plans to continue innovating in 2021."

Last month, Twitter permanently suspended the verified account of former President Donald Trump, citing concerns the President's accounts could be used to incite more violence following his alleged rousing of a mob that stormed the Capitol on January 6 and lead to the deaths of at least five people, including a police officer.