Facebook sees ad revenue grow 43%, with 76% of that mobile
Facebook’s monthly active users were at 1.49 billion in June, up 13 percent year-over-year, though net income came in at $1.273B, 8 percent below the same quarter last year
The rush of earnings reports from the big West Coast companies concluded (I think) today with Facebook, which reported fantastic ad revenue growth, though net income was down (which isn’t making investors happy).
The financial press, actually only BusinessInsider, only seems to care about whether earnings reports come in over or under the forecasts. Everyone else dismisses the forecast totally. But, for the record, Facebook’s Q2 report was a “beat”.
The impressive thing remains the rate of ad revenue growth, and the percentage of Facebook’s business is now coming from mobile. “Mobile advertising revenue represented approximately 76% of advertising revenue for the second quarter of 2015,” Facebook’s report said, and that is truly impressive.
One senses that for many ad buyers, Facebook represents mobile the way Google once represented web, and so becomes the easy, default ad buy. These ad dollars are not coming directly from traditional media, in that the same ad buyer that once was buying print is now buying mobile. No, it doesn’t work that way. The ad dollars are shifting from print to digital, web to mobile, and so different ad buyers are seeing their budgets increase or decrease. But the dollars are going to Facebook, that’s for sure, and more will in the future as publishers agree to work with Facebook on such projects as Instant Articles.
Here is Facebook’s Q2 2015 earnings statement:
MENLO PARK, Calif. – July 29, 2015 — Facebook, Inc. today reported financial results for the quarter ended June 30, 2015.
“This was another strong quarter for our community,” said Mark Zuckerberg, Facebook founder and CEO. “Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services.”
Second Quarter 2015 Operational Highlights
- Daily active users (DAUs) – DAUs were 968 million on average for June 2015, an increase of 17% year-over-year.
- Mobile DAUs – Mobile DAUs were 844 million on average for June 2015, an increase of 29% year-over-year.
- Monthly active users (MAUs) – MAUs were 1.49 billion as of June 30, 2015, an increase of 13% year-over-year.
- Mobile MAUs – Mobile MAUs were 1.31 billion as of June 30, 2015, an increase of 23% year-over-year.
Second Quarter 2015 Other Financial Highlights
- Mobile advertising revenue – , up from approximately 62% of advertising revenue in the second quarter of 2014.
- Capital expenditures – Capital expenditures for the second quarter of 2015 were $549 million.
- Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $14.13 billion at the end of the second quarter of 2015.
- Free cash flow – Free cash flow for the second quarter of 2015 was $1.33 billion.