Facebook Eclipses 2 Billion Monthly Users – 2017 Q2 Earnings Review

Facebook Eclipses 2 Billion Monthly Users – 2017 Q2 Earnings Review

We’re breaking down some of the numbers reported by Facebook today, and again it looks like they’ve beaten all estimates. Here are some of the details released.

  • Daily active users (DAUs) – DAUs were 1.32 billion on average for June 2017, an increase of 17% year-over-year.
  • Monthly active users (MAUs) – MAUs were 2.01 billion as of June 30, 2017, an increase of 17% year-over-year.
  • Mobile advertising revenue – Mobile advertising revenue represented approximately 87% of advertising revenue for the second quarter of 2017, up from approximately 84% of advertising revenue in the second quarter of 2016.
  • Capital expenditures – Capital expenditures for the second quarter of 2017 were $1.44 billion.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $35.45 billion at the end of the second quarter of 2017.
  • Headcount – Headcount was 20,658 as of June 30, 2017, an increase of 43% year-over-year.

Takeaways:

First of all, the all important “Daily Active User” count in social media continues to climb for Facebook. Their monthly community of over 2 billion members is growing at a good clip, especially for a company that already has such a large network. It will be interesting to see how the market reacts when (eventually) Facebook starts to run out of room for growth in this department. For now, though, that doesn’t seem to be a problem.

Second, the company beat on both their EPS and Revenue projections. EPS $1.32 vs. $1.13 Est.; Q2 Revs. $9.32B vs. $9.20B Est.

EPS $1.32 vs. $1.13 Estimates.; Q2 Revs. $9.32B vs. $9.20B Estimates.

This marks yet another quarter where Facebook has beaten on both measures of success. They’re really starting to make investors feel safe around earnings time.

Finally, one of the biggest and most important numbers, especially for advertisers, is the Mobile Advertising Revenue. As you can see, 87% of ad revenue came from mobile ads – for advertisers, the shift away from the desktop to the phone/tablet is near complete. Nearly everything built in the future needs to be mobile first when it comes to advertising – it’s where consumer attention is focused.

Stay up to date with Facebook and their earnings call today in their Newsroom.