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Facebook’s net profit grows by 186% to $2B backed by ad growth


Financials and operating metrics

Daily active users (DAUs) – DAUs were 1.13 billion in Q2FY16, an increase of 17% year-over-year.
Mobile DAUs – Mobile DAUs stood at 1.03 billion on an average for June 2016, an increase of 22.4% year-over-year.
Monthly active users (MAUs) – MAUs were at 1.7 billion as of June 2016, an increase of 15% year-over-year.
Mobile MAUs – Mobile MAUs were 1.57 billion as of June 2016, an increase of 19.8% year-over-year.
– Mobile ad revenue reached $5.2 billion, up 81% year-over-year, and was approximately 84% of total ad revenue.

Facebook posted a net profit of $2.05 billion for the quarter ended June 30, 2016. Net profit was $719 million in the same quarter last year, a staggering growth of 186%. Facebook’s net profit was primarily boosted by its ad revenues which grew 63% y-o-y to $6.24 billion from $3.83 billion in the same period last year. Some takeaways from Facebook’s earnings and call with analysts.

1.1 billion daily active users & other numbers:

Facebook is being used by 1.7 billion people every month and 1.1 billion people every day. According to Facebook founder and CEO Mark Zuckerberg, “over the past year, we’ve added over 200 million people using Facebook on a monthly basis. And in the second quarter, time spent per person increased double-digit percentages year-over-year across Facebook, Instagram and Messenger, and that doesn’t even include WhatsApp yet.”

“There are more than 2.5 trillion posts in our network. Now people are doing more than 2 billion searches a day between looking up people, businesses, and other things. WhatsApp and Messenger now each have over 1 billion monthly actives and Instagram surpassed 500 million.”


Facebook mentions that over 60 million businesses use its products for advertising. “Over 85% of active business pages use mobile, and 40% of active advertisers have created a Facebook ad on their mobile device.” said Zuckerberg, “Our third priority is making our ads more effective and relevant and with only a small fraction of our 60 million business page is advertising, we have a lot of opportunity ahead.”

Facebook Lite & connectivity in developing countries:

Facebook Lite, the lightweight version of Facebook’s app, is now being used by 100 million people. Zuckerberg said that “One of the biggest opportunities to grow our community is in developing countries where connectivity is less advanced than what we take for granted here at home. So, over the past couple of years, we’ve been making steady improvement throughout to make them work regardless of the device or connection that people are using, like Facebook Lite.”

VR gaining traction:

Facebook, which launched the Rift last quarter, mentions that it has fill its pre orders for the device. According to Zuckerberg “As of the second quarter, more than 1 million people a month are now using Oculus on mobile phones through our Gear VR partnership with Samsung. More than 300 apps are already available at the Oculus store for Gear VR and we’re doing AR research and are seeing lightweight versions of AR technology in mobile apps like MSQRD.”

10 year plan:

Facebook announced DeepText this quarter, a deep learning based engine that can understand the context of thousands of posts per second in 20 different languages. According to Zuckerberg, “This is a long-term project, but it also has some near-term benefits like helping show people more of what they want to see and filtering out less of what they don’t want to see,” adding “I’m also excited about the early progress we’re making on our ten-year initiative. We carried out the first successful flight of Aquila, our solar powered aircraft that will beam Internet to places that have never been connected.”


Download: Earnings Release | Presentation

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