Meta CEO Mark Zuckerberg is optimistic about the potential of Threads, the company’s new text-based conversation app, to become the next billion-user social network. During an earnings conference call, Zuckerberg stated that Threads could become a fifth-grade app in Meta’s suite of apps, which includes Facebook, Instagram, WhatsApp, and Messenger. Although Threads gained 100 million sign-ups within five days of its launch, its subsequent usage has declined, attributed to its limited features.
Zuckerberg acknowledged that there is still work to be done to improve Threads and retain users. He emphasized the importance of building basic functionality, fine-tuning the service, and enhancing its stability before focusing on monetization. Meta plans to invest more resources into Threads once it reaches hundreds of millions of users.
The launch of Threads comes at a time when some Twitter users are seeking alternative services due to product and policy changes by its owner, Elon Musk. While Meta has experienced limited success with standalone apps in the past, Zuckerberg believes Threads could break this pattern. The CEO mentioned Threads as a prime example of the company’s year of efficiency efforts, as it was developed by a small team within a tight timeframe.
During Q2 2023, Meta’s profit rose by 16% to $7.8 billion year-on-year, with revenue increasing by 11% to $32 billion. Facebook, Meta’s flagship app, surpassed 3 billion monthly active users for the first time during the same quarter. In total, Meta’s apps are used by over 3.8 billion people on a monthly basis. Zuckerberg highlighted Meta’s exciting roadmap, which includes the launch of Llama 2, Threads, Reels, new AI products, and Quest 3 this fall.
Meta’s drive for efficiency involves creating stability for employees, removing barriers that hinder progress, and introducing new AI-powered tools. The company has undergone significant cost-cutting measures, including layoffs and a flattened organizational structure, which have already demonstrated success in building higher quality products faster.
Meta’s financial results indicate a rebound in the digital advertising market and strong user engagement. Zuckerberg expressed optimism for the future and the potential growth of Threads, once it achieves broader functionality and widespread adoption. Without any immediate plans for monetization, Meta aims to take the necessary steps to ensure Threads becomes an integral part of its suite of apps and appeals to billions of users worldwide.
