Facebook Reaches New Milestone. Hits 1.72 Billion Users, Increase Earnings & Growth in Q2 Report
Facebook recently released it's Q2 reports on it's Investor news blog and it appears they're doing great than everybody thought.
The network recorded massive growth in the second quarter of 2016. This post is a quick summary of it all.
And what it means for marketers, a discussion on how marketers can leverage the ever growing Facebook.
The social network continued steady growth just slightly slower at 3.63% compared to last quarter’s 3.77%, adding 60 million monthly users this quarter to reach 1.71 billion.
It scored $6.44 billion in revenue and $0.97 EPS, blowing past estimates of $6.02 billion and $0.82 EPS.
More details below:
Facebook Hits a New Milestone!
That's right. Facebook's positive earnings went up with a 7.5% bump in after hours trading to $132.60 which attracted a lot of reactions from others including the Wall Street.
The company also recorded a 59% growth which now happens to be a yearly thing which is a good thing of course and helps keep it's competitors like Twitter who's growth sunk by 40% in the last year at Bay.
Another huge accomplishment by the social Media giant? Facebook recently hit 1 billion daily mobile users.
Daily Active Users On Facebook
Apart from the milestone reported above, It also appears the company has a lot of wins this second quarter as the total daily active users rise to 1.13 billion users which is a 17% increase however mobile users got a 20% bump to reach 1.57 billion mobile MAUs.
Facebook’s efficient social network operation raked in $2.05 billion in profit, compared to $719 million a year ago, while average revenue per user is now $3.82, up a big 15% from last quarter.
As we detailed last quarter, Facebook has found a way to squeeze more cash out of the developing world, where average revenue per user (ARPU) grew a sharp 24% to $1.13.
Facebook after years of much win has managed to keep over $23 billion dollars in cash and it appears the company might be making another big acquisition soon.
Facebook's Growth Despite Bad Press
These past few months have not exactly positive with Facebook when it comes to the press as Facebook’s Q2 was marred by several bouts of negative press.
Allegations from anonymous sources suggested it was purposefully suppressing conservative news Trends. Facebook denied the allegations and its internal investigation found no proof, but it vowed to better train Trend curators to avoid bias.
Later, on the behalf of its users, it changed the News Feed algorithm to prioritize posts from friends and family over stories from news publishers and brands.
It’s still too early to draw conclusions on the size of the drop in reach and referral traffic for publishers, though Facebook admitted it’d be significant.
Facebook Live continued its growth, pulling some attention from Twitter’s acquisition Periscope that beat it to market last year. Live got new creative expression features and an API to help broadcasters use professional equipment.
Meanwhile, video on Facebook continued its ascension, becoming a legitimate YouTube competitor. Mark Zuckerberg wrote in his letter to shareholders that “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services.”
Facebook’s secondary products enjoyed big milestones. Facebook Messenger hit 1 billion active users, thanks to constant product iteration like the new addition of an end-to-end encryption option, though also the fact that Facebook removed chat from its main app and forced users to download Messenger.
Meanwhile, Instagram reached 500 million users. Its community bristled at the announcement that an algorithmic feed would start highlighting the most popular posts instead of showing a purely reverse chronological stream.
What's Up For Marketers!
That's that for the report.
So what's does this exactly mean for Advertisers, marketers like you, Me?
Lets discuss that in the comments.