Facebook CEO Mark Zuckerberg
Facebook just smashed its Q2 earnings.
The company accelerated its revenue
growth in the second quarter, delivering a
59% increase that blew past Wall Street
targets and sent its shares up 8% to a
new all time high in after hours trading
on Wednesday.
The stock is now up about 6.5%.
Here are the most important numbers:
Q2 earnings per share (adjusted) : $0.97
vs expectations of $0.82
Q2 revenue: $6.44 billion versus $6.02
billion expected, up 59% year-over-year
Q2 monthly active users: 1.71 billion
(1.69 billion expected), an increase of 15%
Q2 daily active users: 1.13 billion (1.12
billion expected), up 17% year-over-year
The ratio of DAUs and MAUs, the best
way to measure Facebook’s engagement,
held steady at 66%, despite worries from
Wall Street that increased competition
from the likes of Snapchat could stealing
away at people’s attention.
With those numbers, Facebook beat Wall
Street expectations on every single
important metric.
Once again, the company is particularly
strong on mobile, where it saw 1.03
billion of its DAUs and 1.57 billion of its
MAUs. No surprise, about 84% of
Facebook’s advertising revenue came
from mobile.
Here are the other important numbers:
Total costs and expenses were $3.69
billion , and capital expenditures were
$995 million.
Free cash flow for the first quarter of
2016was $2.20 billion.
Only 3% (197 million) of Facebook’s
revenue came from payments and
other fees, down 8% year-over-year –
the company has previously attributed
this decline to a drop in revenue from
gaming apps.
Most of Facebook’s revenue comes
from North America and Europe with
about only 25% ($1.6 billion) coming
from Asia-Pacific and the rest of the
world. But those areas account for
67% of its monthly active users. The
average revenue per user in those
regions is still tiny, compared to in the
US: $1.77 and $1.13, respectively,
versus $14.34 and $4.72 in the US
and Europe.