The worldwide chat app has reached an impressive milestone, as WhatsApp passes 900 million monthly users without making a profit for its owner, Facebook. It’s an odd concept to think that such a successful and highly used app is not bringing in the big bucks, in spite of keeping millions of users connected to their friends and families.
However, it’s not all about the money. Well, at least not yet. Last year Facebook acquired WhatsApp for a generous $19 billion, in spite of the fact that it wasn’t turning a profit for its previous owner either. Instead, they have taken it under their wing and nursed it until it reached a whopping 900 million monthly active users.
It’s still not quite Facebook’s 1 billion milestone recently reported, but it’s an excellent progress to a potentially even bigger payout in the future. The latest update from WhatsApp’s CEO Jan Koum has let us know that their app has reached an incredible number of monthly active users, where the last 100 million have been added within the just the last five months.
Meaning that the app has seen a 50% in its user base within the last year. Facebook CEO Mark Zuckerberg was one of the many to congratulate Koum on this great achievement, along with Facebook’s COO Sheryl Sandberg, who has also left a post congratulating both him and every member of the WhatsApp team for touching this grand milestone.
Its service has seen a drastic uptake in countries such as Brazil, Russia and India lately, with the latter accounting for around 70 million of active users. And, in spite of all these promising and positive achievements, it has been reported that the app is not making Facebook any money. It’s yearly $1 subscription is loosely enforced and has only been applied to a few countries.
Perhaps the paid subscription might make its presence known in others as well, but while the situation sounds a bit dire in terms of profit, it’s likely not. Facebook is no slouch when it comes to business, so there is a reason why they’re so avidly still supporting it without monetizing.
According to Zuckerberg, when they would reach “1 billion, 2 billion, 3 billion” there will be clearer ways of drawing a profit.
In the meantime, the reason could be because Facebook is now officially in the lead of chat apps available on the market, with WhatsApp at number one with 900 million, and their very own Facebook Messenger on second place with 700 million users. It means that the company is dominating over the market, and quite well ahead of the third place, WeChat with 600 million active users.
Facebook has been working hard on upgrading and improving their Messenger, and they seem very determined on making it the most popular chat app worldwide. The fact that they also own their biggest competition is quite certainly going to guarantee they will remain relevant in the public’s eye.
Image source: techcrunch.com