META’s CEO Mark Zuckerberg informed employees that they are prioritizing retention efforts for their Twitter rival, Threads, as the app witnessed a significant drop in users, losing over half of its user base shortly after the initial high-profile launch.
During an internal company town hall, Mark Zuckerberg, CEO of META, revealed that user retention on their text-based app Threads surpassed executive expectations but admitted it was “not perfect.”
Despite over 100 million sign-ups, he acknowledged the need to improve retention. Zuckerberg deemed the initial drop-off as “normal” and expressed optimism about future growth.
META plans to enhance the app with additional features, such as a desktop version and search functionality, aiming to increase user engagement and boost retention rates. The company remains committed to refining Threads to retain a substantial portion of its user base.
Chief Product Officer Chris Cox stated that Meta plans to enhance user retention on the Threads app by introducing “retention-driving hooks,” such as enabling Instagram users to access crucial Threads content. A company spokesperson declined to comment on the meeting.
This announcement followed a positive revenue growth forecast by Meta, signaling resurgence for the company, which faced doubts due to high metaverse-related spending and declining ad sales.
In response to the disclosure, Meta’s shares surged 8%. During the same call, CEO Mark Zuckerberg expressed confidence in the progress of augmented and virtual reality technology for the metaverse, stating that it was on track, though not significantly ahead of schedule.