Mike Isaac and Beth Callaghan

Recent Posts by Mike Isaac

Facebook’s Declining User Growth Rate, Pictured

Congrats, Facebook!

According to the stats you released during Wednesday’s earnings call, your monthly and daily active user numbers are up higher than ever, topping 1.11 billion and 665 million, respectively. That’s great, really.

Problem is, even though it is growth, that growth rate has seen a slow decline over the past year, as the company has penetrated deeper into the U.S. and Europe. Asia and what Facebook deems the “rest of the world” categories are clearly the largest areas for potential new user growth, and thus where the company will likely focus its growth efforts.

Good news, however! Daily active users as a percentage of monthly active users — usually a good sign of how engaged users are — is very slowly yet very steadily on the rise, at about 60 percent compared to 55 percent since Q1 of 2011.

Take a look at the chart below for insight into the growth rate decline:

FBGR1


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