By Adam Fraser
Another quarter, yet another powerful set of results from the world’s biggest social network. Same old same old.
If you want to dive into detail, you can find the detailed financials, 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 1.71bn from 1.65bn last quarter (3.6% growth) and 1.49bn a year earlier (14.9% growth)
- Daily active users hit 1.13bn from 1.09bn last quarter (3.5% growth) and 968m a year earlier (16.5% growth)
- Almost 92% of MAUs and DAUs accessed Facebook via a mobile appliance with 56.5% of MAUs exclusively using a mobile
- Mobile DAUs cracked the 1bn level and Instagram now has 500m monthly users (300m daily)
- Facebook Messenger has hit 1bn MAUs ( Whatsapp exceeded 1bn MAUs last quarter); across the combined platforms, 60bn messages are sent every day on these platforms, 3 times the level SMS hit at its peak
- Total revenue was $6.4bn (exceeding market expectations) versus $5.3bn in Q1 (19.6% increase) and $4.0bn a year earlier (59% growth) – generating a net profit of $2.1bn; capex was $1bn for the quarter
- Facebook has reasonably balanced global spread with 50% of revenue coming from USA and Canada
- Mobile ad revenue of $5.2bn was 84% of total ad revenue (as a proxy this was 76% a year ago and only 20% 3 years ago)
- Facebook ended the quarter with a cool $23bn in cash
- Some interesting random stats: Facebook search hit 2bn searches per day (out of 2.5 trillion posts in the whole network); more than 1m people/month are using Oculus Rift on mobile via Gear VR; there are more than 60m active business pages;
Wall Street liked what they saw driving the shares up by 7.5% on the day the results were released.
“Our community and business had another good quarter,” said Mark Zuckerberg, Facebook founder and CEO. “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services.”
In the investor call management discussed a number of other initiatives which continue to progress well – a lighter version of the Android app (Facebook lite) which over 100m people are using on 2g networks; 360 photos – 360 degree photos which can be taken without a specialist camera; global internet to remote parts of the world; AR and VR
With continued user growth in Facebook, Instagram, WhatsApp and Facebook Messenger, ongoing investment in long term initiatives and increasing dominance in mobile, the scorecard continues to tick almost all boxes. Another sensational set of quarterly results.