Facebook Inc. (NASDAQ: FB) has given another stellar performance in Q2 2016 by beating market expectations. According to the earnings report, Facebook’s revenue in Q2 2016 is up by 59%YoY to $6.44 billion, beating the last estimation of $6.02 billion. But, the celebration is for 1 Billion Mobile Monthly Users (MAUs) that helped the total count of users’ reach 1.71 billion.
In a nutshell, every mobile platform, but Instagram, that Facebook owns has achieved the milestone of 1 Billion Monthly Active Users. In February the number of WhatsApp users crossed 1 billion figure while just a few days back Facebook announced that it’s another mobile messaging platform, Messenger, has also crossed the magical 1 Billion Monthly Active Users mark. With 500 million users, Instagram is the only mobile sharing platform that is yet to match the growth of other properties Facebook owns.
“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,” said Mark Zuckerberg, Facebook founder and CEO.
Here are the main highlights of Facebook’s Q2 2016 earnings:
Facebook Q2 2016: Growth In Users
While the growth in Monthly Active Users (MAUs) has been outstanding, it’s Daily Active Users (DAUs) that illustrates the company’s performance in the context of users base.
- The total count of Monthly Active Users (MAUs) reached to 1.71 billion, adding 60 million new users in Q2 2016.
- The number of Daily Active Users (DAUs) went by 17% YoY, to 1.13 billion.
- The Mobile Monthly Active Users totaled 1.57 billion by the end of Q2 2016, resulted in 20% YoY growth.
- The number of Mobile Daily Active Users were increased by record 22%, to 1.03 billion users by the end of Q2 2016.
- The count of Mobile-Only users reached to 967 million.
Facebook Q2 2016: Revenue and Profit
Facebook’s overall growth in revenues and profit was once again driven by mobile. 84% of the company’s total advertising revenue in Q2 2016 was represented by mobile. The contribution of mobile to Facebook’s revenue and profit is on a constant rise with each passing year. During the same quarter last year the contribution of mobile in the companies advertising revenue was approximately 76%, which is up by 8% point in the last four quarters.
- Facebook’s total revenue for the Q2 2016, was $6.46 billion, up by 59% YoY
- Of the total revenue, $6.2 billion came from advertising, rest from Payments & other fees.
- In Q2 2016, the net income of Facebook was up by 186% year over year, to $2.05 billion.
Facebook Growth by Region
After the Q2 2016 earnings results, it looks like Facebook is strengthening its presence in regions vital for the future revenue and profit growth. While the US & Canada made the greatest contribution to the company’s revenue, it was APAC region from where Facebook got the maximum number of new users. However, after a slow growth in ARPU (Average Revenue Per User) in APAC for the many previous quarters, Facebook has recorded a glittering growth in Q2 2016.
- After the declined overall ARPU in Q1 2016, Facebook bounced back with the highest ARPU figure of $3.82 in Q2 2016.
- The US & Canada contributed the most to the Facebook’s overall revenue as the ARPU in the region jumped up all time high to $14.34.
- But the biggest sign of relief for Mark Zuckerberg and team came from APAC, where the ARPU increased to $1.77.
Though the APAC figure still looks disappointing in comparison to the other regions, considering the growing contribution of APAC in Facebook’s overall growth, it’s being seen as a positive sign for a flourishing future of Facebook in the region.
Despite being in the market for more than a decade now, Facebook is able to keep users glued. This could be attributed to the introduction of new features at regular intervals. While Snapchat may be trying hard to eat Facebook’s market share, and Twitter is struggling to secure its grounds, Facebook remains the most favorite social network of 1.71 billion internet users in the world. Add up all this with the growth of Messaging apps, WhatsApp and Messenger, owned by Facebook; the social media behemoth leads with a distant margin with absolutely no visible competition in near future.