Archived entries for user base

Shifting to Mobile*

With its Q1 2014 earnings, Facebook demonstrated its continued structural shift to a mobile company. The company’s mobile active users for the first time crossed the 1B mark. Mobile active users are also growing faster than any other user base segment. This user base shift is reflected in Facebook’s changing revenue composition, bearing out the company’s past commitment to transition to a mobile-first company.1

Facebook’s user base now sits just below 1.28B MAUs (monthly active users). When we visualize Facebook’s usage composition we can see that its mobile user base is on track to reach or exceed its current total user base. We can also see that mobile-only usage is growing quickly, increasing 15% sequentially. We can conclude that Facebook is increasingly hired as a mobile platform.2 It is unsurprising, then, that Facebook’s revenue composition reflects this shift.

Facebook's usage composition: monthly active users (desktop + mobile), daily active users (desktop + mobile), mobile monthly active users, mobile-only monthly active users, Instagram, WhatsApp

Facebook saw $2.5B in revenue in the first quarter, a 72% year-over-year increase. The company’s payments business saw only a modest year-over-year increase.3 The bulk of its revenue growth accrued to its advertising business. And it is here that we see the consequence of the shift in Facebook’s user base composition. In the first quarter, Facebook’s mobile ad revenue was 59% of its total ad revenue, up from 30% over the year-ago quarter.

Continue reading…

Slowing Growth in Facebook’s Mature Regions

In our earlier analyses, we observed that Facebook’s user base growth in North America region was outpaced by Facebook’s other regions, especially its emerging market regions Asia and rest of world. In fact, Facebook’s S-1 filing revealed to an extent that this was occurring. Based on the latest quarterly data, we can see that Facebook’s emerging market regions continue to outgrow its established markets on a sequential basis.

Facebook provides data about monthly active users (MAUs) and daily active users (DAUs). MAU data show that Facebook’s growth in North America has slowed substantially relative to growth in its other markets. At a reported 195 million monthly active users, Facebook continues to edge closer to market saturation in North America. As we can see, the growth rate has slowed to between 1% and 2% for the past three quarters.1

Facebook's monthly active users per region

According to its 10-Q, Europe region includes all users from Russia and Turkey. Europe region is therefore larger than North America; however, it shows simliar user base growth deceleration. According to Facebook, Europe region accounted for 269 million monthly active users. The region is still growing slightly faster than North America, showing 3% sequential growth. However, Europe region shows a maturation trend simliar to North America.

Continue reading…

Revisiting Facebook’s Emerging Market ARPU

In our earlier analysis, we looked at Facebook’s emerging market average revenue per user (ARPU). We saw that while Asia and rest of world regions showed the highest rate of user base growth, they also showed the lowest ARPU. After two quarters, we can reassess Facebook’s ARPU story, taking a closer look at user growth trends and concurrent ARPU, while also considering the affect of mobile monetization in Facebook’s fastest growing regions.

Facebook continues to see healthy user base growth in its emerging markets. In the past two quarters, Facebook’s user base in Asia and rest of world regions, measured by monthly active users (MAUs), grew by 8.6% and 7.6%, respectively. Facebook saw 298 million MAUs in Asia in the quarter, and 304 million MAUs in rest of world region in the quarter. Combined, these regions represent 57% of Facebook’s overall MAUs. In absolute terms, Asia and rest of world regions continue to outgrow Facebook’s established markets.1

The average revenue per user story for Facebook’s emerging markets over the past two quarters is more positive, showing good revenue growth relative to user base growth in Asia and rest of world. In the third quarter, the company averaged $0.58 per user in Asia and $0.47 per user in rest of world region. In the fourth quarter, Facebook averaged $0.69 per user in Asia, and $0.56 per user in rest of world. Accordingly, the company saw a 5% and 18% increase in ARPU over the third quarter, respectively.

Continue reading…



Continuance - Facebook Analysis by . @jonmilani. Copyright © 2017. All rights reserved. Hosted by (mt) Media Temple.