Line reports 2014 revenues of $656M, reaches 181M monthly active users

Line Corp announced today revenues from its messaging app suite clocked in at JPY 77.4 billion (about US$656 million) in revenue for the year 2014. That marks a 126 percent increase from the year prior, when it brought in JPY 34.3 billion (about US$338 million).

That’s a healthy surge. But there’s some evidence indicating that the app’s rocket growth is shifting from high-gear to mid-gear.

Revenues for Q4 2014 came in at JPY 23.6 billion (about US$200 million), marking a 10 percent increase from Q3, when the app brought in JPY 20.9 million (about US$177 million). Between Q2 and Q3 of 2014, however, revenues jumped 17 percent. The company counts 181 million monthly active users on its app, marking a slight increase from October 2014, when it reported 170 million monthly active users. In Japan, Thailand, and Taiwan, where Line says it has “top share,” it counts 91 million monthly active users.

It’s likely that 2015 will see the company direct its attention away from user acquisition, and towards deepening its product suite in key markets. Tellingly, the report doesn’t reveal Line’s global registered user count – a figure the company once trumpeted at every opportunity. CEO Akira Morikawa gave the following statement (emphasis ours):

“Looking back on 2014, it truly was a decisive year. We decided not to settle as just a simple messenger app, but instead resolved to become the world leader in platform development with our LIFE and Entertainment platforms as the centerpieces of our efforts.”

“Along with this new strategy, we shifted gears starting in the fourth quarter of 2014, switching from a focus on increasing our worldwide user numbers globally to a strategy where we focus on high priority markets and proactively invest in markets where we hold the top share, such as Japan, Taiwan, and Thailand.”

“We are also focusing on markets where we are in close competition for the top share, including Indonesia, the Philippines and other Southeast Asian countries, as well as South American countries like Columbia and Mexico. Finally, we are also focusing on breaking into markets such as the United States where would be considered a challenger.”

Note the order of mention – top share markets, close competition markets, and challenger markets.

Even if Line trails WhatsApp, Facebook Messenger, and Snapchat for users and stickiness, it’s in an excellent position to become the WeChat of Thailand, Japan, and Taiwan. Judging by recent activity, that’s the direction it’s heading towards. The company recently launched LineTaxi, Line@ accounts for businesses, and Line WOW food delivery service in Japan. It also acquired MixRadio, indicating that music streaming is on the way for users outside of Japan. Launching into new verticals might help the company diversify its revenue sources. To date, it makes most of its money from game-related purchases.

Line’s Taiwanese and Thai teams might draw inspiration from its Japanese product suite, but there’s no guarantee that the app will offer the same services in these markets. In Taiwan, for example, Line’s peer-to-peer ecommerce app has yet to launch, and the company is aggressively marketing its Quora-esque app LineQ.

Last Autumn Line Corp announced it would delay its IPO, which many expected would take place by the end of 2014. Next month, Morikawa will step down from his role as CEO and be replaced by current COO Takeshi Idezawa.

See: Line CEO stepping down, COO to take over messaging app’s transformation