Today, at Twitter Inc.s first analyst day, the Chief Executive Officer of the company Dick Costolo revealed that 500 million people visit the companys website on a monthly basis without logging in. Mr. Costolo explained that the microblogging service of the U.S.-based company is accessible not only to its subscribers, but also to a large number of people, who check on individual tweets or users profiles every month. This was a step towards defending the policy of the company, which has been recently facing investors and analysts concerns.
In addition, the new Chief Financial Officer of the company, Anthony Noto, explained in a statement, cited by the Financial Times, that Twitter wanted to become one of the “top revenue generating internet companies in the world”. As reported by the Wall Street Journal, Mr. Costolo also added: “Moving forward, you can expect us to accelerate the pace and breadth of product change.”
Twitter also presented its long-term strategy today, in an attempt to put an end to the constantly increasing investor concerns about the growth prospects and strategy of the company. Twitter projected higher margins and revealed that it is currently negotiating with business partners in order to extend the reach of their advertising.
Chief Financial Offer Noto said that Twitter was able to reach annual sales of $14 billion over the next decade, which represents a ten-time increase of its sales of $1.4 billion, which were projected for 2014. Mr. Noto also said that the company could generate a total of $11 billion in sales within a period of five to eight years.
Rob Sanderson, an analyst at MKM Partners, posted an e-mailed comment on the companys announcement, cited by Bloomberg: “They did a good job to highlight what’s happening to improve user growth. This was the most important thing management had to deliver on for investors at this event.”
Twitter Inc. was up 7.45% to close at $42.54 per share yesterday, marking a one-year gain of 1.53%. The company is valued at $25.12 billion. The companys shares traded at €34.634 in Frankfurt as of 9:52 GMT. According to CNN Money, the 31 analysts offering 12-month price forecasts for Twitter Inc. have a median target of $54.00, with a high estimate of $64.00 and a low estimate of $39.00. The median estimate represents a +26.94% increase from the last price of $42.54.
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