By Adam Fraser.
Another quarter, another sensational quarterly result for Facebook.
As a blogger, a key challenge is becoming crafting a different headline about another exceptional Facebook result every 3 months.
Whatever concerns any of us may have about Facebook’s market power and its attitude to privacy, there is no denying the strength (and depth) of its results. User numbers. Advertising metrics. Mobile. Video. Profitability. Cash. It’s all there.
For those that font have the time and simply want the 10 key soundbites, here you go:
- Daily active users (DAU) cracked the 1bn level, hitting 1.007bn compared to 864m a year ago (17% increase) and 968m last quarter
- The importance of mobile was again evident in spades – mobile DAUs hit 894m compared to 703m a year ago (27% increase) and 844m last quarter
- Facebook and Instagram now account for more than 20% of all mobile minutes spent in the USA
- Monthly active users (MAU) hit 1.545m verus 1.35bn a year ago (14% increase) and 1.49bn last quarter (note Instagram exceeded 400m MAUs in the quarter)
- Mobile MAUs hit 1.385bn versus 1.124bn a year ago (23% increase) and 1.314bn last quarter
- Total revenue for the quarter was $4.5bn compared to $3.2bn a year ago – an incredible 41% increase for a business of its size
- Advertising represents the dominant means of revenue generation, with 2.5m advertisers delivering 96% of all revenue for the quarter; incredibly mobile generated 78% of all advertising revenue (compared to 66% a year ago)
- Average revenue per user hit a record level of $2.97/user – (side note – would you pay a few dollars per month for an ad free service?) – ranging from $10.49/user in the USA to $0.94/user in the ‘rest of world’
- Facebook continues to invest an impressive 28% of revenue into R&D – slightly down on the 29-30% of previous quarters but still a hefty clip given its size. Longer term investments (internet.org and Oculus Rift) continue
- The business generated a record level of free cash flow for the quarter of $1.4bn ($766m a year ago) – this is where the rubber hits the road.
“We think we have the best mobile ad product in the market. We’re able to target, we’re able to measure. We have broad scale,” Sheryl Sandberg, Chief Operating Officer at Facebook, told CNBC.
Mark Zuckerberg noted the platform now has 8bn daily video views.