Facebook Is Growing in Terms of Revenue but Is the User Growth Increasing as Well?

Facebook is one of the oldest and most used social media application currently in the social media world and the platform just keeps on growing year by year. This year in the first quarter of 2021 Facebook managed to do exceptionally well and showed an increase in both the users and revenue of the application while at the same time maintained a similar growth strategy in its 'Other revenue' category, largely driven by Oculus VR and Portal smart speaker sales.

FB's Earnings Presentation shows that the monthly active user (MAU) of Facebook grew up to 2.85 billion, which is a 10 percent increase that has been observed year over year and the tech giant managed to maintain its biggest growth in the Asia pacific region for the sixth consecutive year this year. At the same time, apart from India and US usually showing a strong response to Facebook adoption, this year Indonesia did as well making it the third-largest user market as the user growth went from 115 million actives in 2017 to 140 million this week and hence Indonesia is now also receiving an investment in the improved connectivity by the tech giant to get more people on the app and online as well, similar to as India is getting because both Indonesia and India have managed to represent significant opportunity for The Social Network.

But why is Facebook providing so much to both India and Indonesia in terms of tech growth? Well, firstly because both these countries have shown a great response to Facebook and while USA has done the same, it is a grown and advanced country while India and Indonesia are still developing their digital ecosystem, which provides Facebook with a perfect opportunity to become the key connective tool, providing new tools and processes to 275 million plus Indonesian citizens as they look to new avenues online. Doing this Facebook’s own investment in ecommerce and digital payments will come into further effect through this and will provide the company more ways to facilitate more functions in users' everyday processes.

Through all these efforts and work will the company a transformative utility in these emerging markets and this is Facebook’s main motive for a growth opportunity currently in these regions.

Facebook has achieved many milestones and currently it managed to achieve an audience of 1.88 billion which makes it a step closer to its next big milestone. However, the question is that despite so many controversies and concerns that have risen against Facebook and so many people claiming to boycott the application, the log in rates have been fairly constant or growing. Though there has been a flat line in log in rates in the US and Canada regions and soon to be followed by Europe, other regions still show activity on the application.

But the question is that does this log in rate means that people are just logged into their accounts and do not use it very often because they are more engrossed in other forms of entertainment apps like TikTok, YouTube, Instagram etc. This is a question we will never know about because Facebook never really releases it user data.

Read next: Facebook Marketplace grows to 1 Billion Users in the First Quarter of 2021, But will the Next Quarter Be Promising Too?
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