By Devindra Hardawar | VentureBeat.com
It’s also worth noting that you can’t create an Instagram account without downloading the app and going through the setup process. There’s no web setup for Instagram, so for there to be more than 40 million users on its API, at least that many people needed to install the app (barring any accounts the company created for testing).
The new milestone hammers home why Facebook was so desperate to purchase Instagram. The photo sharing app may not have a legitimate revenue stream yet, but it has stumbled upon a secret to crazy fast growth. It proves that users are far more valuable than actual revenue. Having a boatload of new mobile users is important to Facebook, as the company pointed to mobile being one of its biggest problems leading up to its IPO.