(Reuters) – Snap Inc’s shares jumped 8% on Thursday after a brokerage said it was encouraged by the growth plans laid down by Chief Executive Officer Evan Spiegel in a leaked internal memo.
The social media firm aims to grow its user base by 30% to 450 million by the end of 2023, and increase revenue to $6 billion, The Verge reported on Wednesday, citing the memo.
The company, which posted $4.12 billion in total revenue last year and had 347 million daily active users (DAUs) as of June end, declined to comment on the growth plans.
“While we see these targets as a stretch, we are encouraged by the management’s ambitions,” analysts at BofA Global Research wrote in a note on Thursday.
They said more favorable economic conditions were required to achieve the targets, but with August revenue estimated to rise between 12% and 15%, Snapchat Plus is likely seeing better-than-expected traction.
The Verge report said Snapchat Plus – the company’s paid offering that was launched in June – is on track to hit 4 million subscribers by the end of 2022.
The report comes days after the company announced a 20% reduction in workforce, restructuring in its advertising sales unit and discontinuation of some projects.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Shinjini Ganguli)
