Today, shares of Twitter (NYSE:TWTR) stock are in the spotlight after The New York Times obtained a Twitter pitch deck from Elon Musk. The pitch deck, presented to TWTR investors, includes Musk’s plans and estimates for the future of the social media platform. Notably, the tech magnate wants to quintuple Twitter’s revenue to $26.4 billion by 2028.
In 2021, Twitter generated revenue of $5 billion. Musk also plans on firing about 1,000 employees if the acquisition is successful. However, the Tesla (NASDAQ:TSLA) CEO plans to have 11,072 employees by 2028 as well. Currently, Twitter has around 7,500 employees.
The pitch deck provided many more specifics on Musk’s plans to change Twitter. So, let’s dive into the details.
TWTR Stock: Elon Musk’s Pitch Deck
In 2020, advertisements accounted for 90% of Twitter’s total revenue. Advertising is currently a large driver of the company’s revenue, but Musk wants to shake things up. He plans on reducing the company’s advertising revenue to 45% of total revenue by 2028. Meanwhile, the Tesla CEO also has plans to bolster subscription revenue.
By 2028, Musk estimates that advertisements will bring in $12 billion of revenue, while subscriptions will bring in $10 billion. The remainder of the revenue will then be attributed to other businesses, such as data licensing and payments. The pitch deck estimates that average revenue per user (ARPU) in 2028 will be $30.22. That’s up $5.39, or 21%, from 2021.
Twitter Blue is currently not very popular among Twitter users, but Musk wants to change that. For $3 per month, Blue will allows users to customize their Twitter experience and receive special features, such as an edit button. By 2025, Musk expects 69 million Blue users. By 2028, that figure is expected to balloon to 159 million users. In total, Musk expects 931 million users by 2028.
Musk Wants to Bring New Features to Twitter
There’s more, however. On top of these estimates, the pitch deck also included an estimate for a new product called “X.” No further details were revealed about X in the deck, but Musk has “hinted at introducing an ad-free experience on Twitter” in the past. The pitch deck estimates 9 million X users by 2023, so the product will likely be revealed soon. By 2028, X is expected to have a whopping 104 million users.
Lastly, Musk has plans to revamp Twitter’s payments business. The feature is currently used sparingly by users. However, by next year, Musk estimates payments to bring in $15 million. By 2028, that figure is expected to skyrocket to $1.3 billion.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
