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FINANCIAL TERMS

User Growth

Description

User growth means an increase in the number of people using a product, service, platform, or app. In simple terms, user growth shows whether the audience is getting bigger. User growth is important because many digital companies depend on a growing user base to increase revenue, advertising income, subscriptions, or network effects. Strong user growth can support a company’s long-term story. For example, if a social media platform grows from 100 million users to 120 million users, user growth is 20%. User growth is not the same as revenue growth. Users may increase, but revenue may not grow if the company cannot monetize them effectively.