Facebook reported a 30% year-on-year increase in revenues to $16.91 billion, of which ad revenue was $16.6 billion (or 98%), while revenue from payments and other fees was $2.7 billion for the quarter ended December 31, 2018. Mobile ad revenues accounted for 93% of ad revenues, up from 89% in Q4FY18.

Its total income was $7.8 billion, 6% higher YoY from $7.3 billion in the same quarter last year. Net income amounted to $6.8 billion, 61% higher YoY from $4.2 billion in the same quarter last year, when it was impacted by a tax law enacted in the US, increasing income taxes payable in that quarter. Facebook’s capex this quarter was $4.37 billion, and cash, cash equivalents, and marketable securities were $41.1 billion. Its headcount increased by 42% YoY to 35,587.

User metrics

  • Around 2.7 billion people now use Facebook, Instagram, WhatsApp or Messenger each month
  • Over 2 billion people use at least one of the four services every day

DAUs

  • 1.52 billion on average for December 2018, an increase of 9% YoY
  • In the investor call, CFO David Wehner said that DAU growth was driven by growth in India, Indonesia, and the Philippines
  • US & Canada 186 million, Europe 282 million
  • APAC: 577 million
  • Rest of the World: 478 million

MAUs

  • 2.32 billion as of December 31, 2018, increase of 9% YoY
  • US & Canada 242 million, Europe 381 million
  • APAC: 9467 million
  • Rest of the World: 750 million

Revenues by geography

  • US & Canada revenue was $8.4 billion, increased mostly among all geographies from $6.3 billion in Q4FY18
  • Europe revenue: $4.1 billion, also increased substantially from $3.2 billion
  • APAC revenue: $2.7 billion
  • Rest of the World: $1.5 billion

Ad revenues by geography

  • US & Canada ad revenue was $8.2 billion
  • Europe ad revenue: $4.0 billion
  • APAC revenue: $2.742 billion, Wehner said APAC saw the strongest growth of 34% YoY
  • Rest of the World: $1.565 billion

ARPU by geography (driven by ads)

  • Worldwide: $7.37
  • ARPU increased substantially in the US & Canada, and Europe
  • US & Canada: $34.86
  • Europe: $10.98
  • APAC: $2.96
  • Rest of the World: $2.11, up from $1.68 in Q4FY18

Other notes from the investor call

  • Facebook said that it is developing a new AI ranking model to improve the delivery of ads on the platform, and also that it is using AI to review ads which violate Facebook’s policies, “which was particularly important during the U.S. midterm elections.”
  • The company said WhatsApp Payments will be rolled out to unspecified countries, without mentioning a timeline.

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