Meta Platforms is focusing on improving user retention for its new app, Threads, after more than half of its users dropped off post-launch. CEO Mark Zuckerberg views the user drop-off as normal, expecting growth with the introduction of new features. The company is planning to add more “retention-driving hooks” to encourage users to return to the app. This comes after Meta’s shares surged by 8% following a rosy revenue growth forecast. The company is also investing in augmented and virtual reality technology, with mass adoption expected in the 2030s. Katie Paul,Sheila Dang reported

Meta Platforms Strives to Improve User Retention on Threads

On July 27th, Mark Zuckerberg, CEO of Meta Platforms (META.O), announced in a company-wide meeting that the focus has shifted towards enhancing user retention on Threads, their latest Twitter competitor. This decision comes after Threads witnessed a decline in its user base following its widely-publicized launch.

Zuckerberg on User Retention

Zuckerberg stated that although the app’s user retention rate was better than anticipated, there’s room for improvement. He expressed his wish to see more users stick around, especially considering over 100 million people signed up initially. He acknowledged that the company is yet to reach this goal.

Potential Growth and New Features

The CEO termed the user drop-off as “normal” and anticipated that user retention would increase as more features are introduced to the app. He mentioned plans to include a desktop version and search functionality to enhance user experience.

Strategies to Boost Retention

Meta’s Chief Product Officer, Chris Cox, shared that the company plans to incorporate more “retention-driving hooks” to encourage users to revisit the app. He suggested integrating Threads with Instagram to increase visibility and engagement.

A Look at Meta’s Financial Performance

The executives’ statements were made a day after Meta impressed investors with a promising revenue growth prediction. This forecast signals potential recovery for Meta, which had faced skepticism over its substantial metaverse investment last year as advertising sales dipped. This positive news led to an 8% surge in Meta’s shares.

Futuristic Metaverse Plans

Zuckerberg disclosed that he believes the company’s work on augmented and virtual reality technologies that will power the metaverse is on schedule. He also emphasized the need to start investing in this area ahead of competitors like Apple, Google, and Microsoft, leveraging their years of experience in developing operating systems.

Artificial Intelligence Model: Llama 2

Zuckerberg and Cox also discussed the recent release of an AI model named Llama 2. It has been made freely available for commercial use to any developer with fewer than 700 million users. The model has been downloaded over 150,000 times within a week of its release.

The company declined to comment on the details of the meeting.

Report by Katie Paul in New York and Sheila Dang in Austin; Edited by Muralikumar Anantharaman

Adherence to Standards: The Thomson Reuters Trust Principles.

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