Q2 2016 – Facebook Earnings Call Summary

Facebook

Below are my key takeaways from the Facebook Q2 2016 Earnings Call on July 27:

Summary:

Revenue grew 59% to $6.4B.  Globally, 1.7B use Facebook every month and 1.1B use it everyday.

Focused on Live video and launched 360 photos, a way for users to take 360 degree shots of their favorite locations.  Since launching, more than 4MM 360 photos have been shared, with 1MM more shared every week. More than 1MM people are using Oculus on mobile phones through Gear VR partnership with Samsung.

CAPEX was just under $1B. Sitting on $23.29B in cash and cash equivalents and marketable securities.

Financial Metrics:

  • Total Revenue: $6,436MM, +59% YoY
    • Q2 2015: $4,042MM
  • Operating Income: $2,746MM, 116% YoY
    • Q2 2015: $1,273MM
  • Operating Margin: 43%
    • Q2 2015: 31%
  • Net Income: $2,055MM, +186% Y0Y
    • Q2 2015: $719MM
  • EPS: $0.71, +184% YoY
    • Q2 2015: $0.25

Key Metrics:

  • Daily active users (DAUs) – 1.13B on avg. for June 2016, +17% YoY
  • Mobile DAUs – 1.03B for June 2016, +22% YoY
  • Monthly active users (MAUs) – 1.71B, +15% YoY
  • Mobile MAUs – 1.57 billion, +20% YoY
  • 97% of all revenue comes from advertising
  • Mobile advertising made up 84% of all ad rev, up from 76% YoY
  • 56% of visitors come via mobile only
  • Instagram has more than 500MM monthly actives, 300mm daily
  • Messenger is used by more than 1B people every month
  • WhatsApp has over 1B people monthly

List of Key Properties:

Forward Thinking:

  • In 3 yrs – build community and help people share more of what matters to them
    • Best opportunity found in developing countries
  • In 5 yrs – build newer products into full ecosystems w developers and businesses
  • In 10 yrs – build new technologies to help everyone connect in new ways
  • Big push toward video, with Live and better video ads, a partnership with the NBA to stream some US men’s Olympic team games

Links to Company Website:

Please comment below if there are data points from Facebook you’d like me to include in their next Earnings Call Summary.

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