With $4 billion revenue, 1.5 billion daily searches and 40 million SMBs, Facebook beats market estimates
Facebook today announced its second quarter 2015 results. The social media platform now has almost 1.5 billion monthly active users on its platform which is approximately half of the internet population The company crossed $4 billion in revenues in a quarter for the first time. More than 1.5 billion searches are performed on the platform per day and the total number of posts(till date) crossed whopping 2 trillion mark this quarter.
Mark Zuckerberg , the Founder and CEO of Facebook was elated with the performance and said,
1.49 billion people are now part of our community. In 1876, the year the first telephone call was made, around 1.49 billion people were alive.
With each generation, the world is growing closer together. One day our community will connect everyone.
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We just announced our quarterly earnings and gave an update on our community's progress.1.49 billion people are now...
Posted by Mark Zuckerberg on Wednesday, July 29, 2015
During the announcement of the quarterly results, he shared Facebook’s ongoing work on next generation of app and their long term innovation efforts, which can be summarized as follows:
- Improving the speed and reliability of existing apps.
- Building new infrastructure(including the new data centre in Texas) to support the global scale.
- Over the last few months, app crash incidents have come down in both iOs(by 30%) and Android(by 40%) apps.
- With messenger app, people are able to send and receive messages 20 % faster.
- Since start of the year, Facebook users are sharing 40% more videos.
Mark mentioned that they are working to make visual content by marketers more engaging. Sheryl Sandberg, COO of Facebook mentioned that more than 40 million small and medium size businesses are operating and leveraging their Facebook pages. The company opened their first office in Africa, in Johannesburg.
Mark believes that Instagram has successfully emerged as a tool to capture and show the real time snapshot of the world.
Here are operational and financial highlights of 2015 second quarter of Facebook:
- 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.
- Mobile advertising revenue - Mobile advertising revenue represented approximately 76% of advertising revenue for the second quarter of 2015, 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.
