Why Facebook Is Counting on Its Apps for Revenue Growth



Facebook now has over 2 billion monthly active users

Facebook’s monthly active users rose 3.4% in fiscal 2Q17 to 2.0 billion from 1.9 billion in 1Q17 as the graph below shows. Close to 66% of those monthly users use Facebook on a daily basis. It has 1.32 billion daily active users, up from 1.28 billion in 1Q17 and up 17% YoY.

As we mentioned in the previous part of this series, Facebook (FB) is running out of space to post more videos on its news feed segment. The social media giant is looking outside its lucrative news feed to increase revenues. Its two chat apps, Messenger and WhatsApp, already have over a billion monthly active users.

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Facebook will soon be counting on Messenger and WhatsApp for revenue growth

Facebook’s Instagram continued on its robust growth track and reached 700 million users. 375 million users use its direct messaging feature and 250 million use its “Stories” section. Instagram had a paltry ~100 million users in early 2013.

Facebook’s Messenger App reached a whopping 1.2 billion monthly users. WhatsApp now has 1.3 million monthly users out of which one billion are daily users.

The company wants to tap the popularity of these apps, which don’t make money for the company yet. The company recently announced that it will start displaying ads in its Messenger App. Meanwhile, WhatsApp recently created product monetizing positions and could soon start making money.


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