By Adam Fraser
The blogger challenge – how to find a different way to describe another sensational quarterly set of results from Facebook, which the market responded favourably to.
If you want to dive into detail, you can find the detailed financial, investor presentation and management conference call. For those without the time to digest all of this, here are 10 key soundbites from the results:
- Monthly active users have reached 1.86bn from 1.78bn last quarter (4.0% growth) and 1.59bn a year earlier (16.9% growth)
- Daily active users hit 1.23bn from 1.18bn last quarter (4.1% growth) and 1.04bn a year earlier (18.2% growth)
- Around 93.5% of MAUs and DAUs accessed Facebook via a mobile appliance with 62% of MAUs exclusively using a mobile (mobile has become so dominant Facebook announced on the earnings call they would no longer separate this analysis out)
- Mobile DAUs approached the 1.15bn level and Instagram now has over 600m monthly users (in impressive 400m logging in daily)
- Video continues to increase in importance as a medium. On the investor call Mark Zuckerberg stated he saw “video as a mega trend, the same order as mobile”
- Total revenue was $8.8bn (exceeding market expectations) versus $7.0bn in Q3 (a massive 25.4% increase) and $5.8bn a year earlier (50.8% growth) – generating a net profit of $3.6bn
- Facebook has reasonably balanced global spread with around 50% of revenue coming from USA and Canada, and growth coming reasonably consistently across the globe
- Average revenue per user spiked significantly by over 20% in one quarter, hitting $4.83 from $4.01 last quarter and $3.73 a year ago; a big (positive) issue for the market analysts
- Facebook ended the quarter with a cool $29bn in cash – enough to buy Twitter approximately two and a half times
- Some interesting random stats: Instagram stories has 150m users – approaching the size of Snapchat; 50 billion messages are sent through WhatsApp every day; 400m people use voice and video chat on Messenger; NYE 2016 was the biggest Facebook Live moment to date; WhatsApp has hit 1.2bn monthly users
“Our mission to connect the world is more important now than ever,” said Mark Zuckerberg, Facebook founder and CEO. “Our business did well in 2016, but we have a lot of work ahead to help bring people together.”
In terms of future growth, there is no question Facebook is looking to AR and VR as key technologies. Somewhat ominously for the competition Zuckerberg said “We’re still early in our 10-year plan for virtual reality, but we’ve made some good progress”
Another incredible set of quarterly results.