Facebook’s Q2 Earnings Report 2019 – The Buyer’s Journey 78

As marketers we use a lot of platforms for our marketing efforts. This is the first in a series of episodes focusing on the Q2 earnings reports of each of a few of those platforms. Today, we’re looking at Facebook’s Q2 earnings report and we’ve got a breakdown of everything you need to know.

Q2 Earnings Report Quick Numbers

Here are a couple quick-hit numbers on one of the largest social media platforms via Salvador Rodriquez on CNBC:

  • Earnings: $1.99 cents per share vs. $1.88 per share, forecast by Refinitiv
  • Revenue: $16.9 billion, vs. $16.5 billion, forecast by Refinitiv
  • Daily active users: 1.59 billion, vs. 1.59 billion forecast by FactSet
  • Monthly active users: 2.41 billion, vs. 2.41 billion forecast by FactSet
  • Average revenue per user: $7.05 vs. $6.87 forecast by FactSet

An In-Depth Look

Throughout the Facebook eco-system, which includes Instagram, WhatsApp, Messenger, and the Facebook app, Facebook says it has more than 2.7 billion monthly users. In the U.S. and Canada, the user base jumped to 187 million, up a million from the year prior. The user base in Europe, however, remained stagnant.

From a money angle, average revenue per users increase to $7.07 from $5.97 in Q2 2018, a 18% increase. In addition, Facebook’s revenue rose 28% compared to last year. Furthermore, the social media giant lowered its capital expenditures forecast for this year to between $16 billion and $18 billion. Previously the estimate sat between $17 billion and $19 billion.

The revenue increase comes in spite of the beginning stages of a transition from Facebook’s News Feed ads to options for Stories ad placements. In essence, many users are interacting with Stories content, while fewer are sticking around on the Newsfeed. That said, Rodriquez reports that Facebook says it has more than 500 million daily users for the Stories features across Facebook, Instagram, WhatsApp and Messenger.

“We think the shift to Stories is a big opportunity for us and advertisers over time,” Chief Operating Officer Sheryl Sandberg said during the call, “I’ll say one more thing which is that Stories don’t monetize rights now at the same rate as News Feeds.”

The Q2 earnings call comes at the back of a $5 billion dollar FTC fine Facebook had to pay for as part of the Cambridge Analytica scandal. Facebook shared in their Q1 earnings call that they expected the fine and were planning accordingly. That said, many are unhappy with the simplicity of the $5 billion dollar fine, saying it doesn’t adequately protect users in the future, nor those already affected.

Check out our next episode where we’ll discuss Google’s Q2 earnings report.

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