11-year-old social networking company Facebook has the knack for beating revenue expectations with every passing quarter. After posting a positive Q2, 2015 Facebook reported $4.5 billion in its third quarter. That figure was a 41 percent increase from last year and $130 million more than analysts had expected. It was the 14th consecutive quarter that the company exceeded Wall Street’s revenue predictions.
In the last quarter the company had posted revenues of $4.04 billion and beat analyst consensus revenue estimates for the quarter by about $50 million.
Here are the three major takeaways from Q3 earnings report for marketers:
Daily Active Users (DAU) – 1.01 billion
Facebook now has 1.55 billion monthly active users, up 14 percent over last year at this time, and an increase of 60 million since the second quarter. The growth rate for mobile monthly active users was higher — 23 percent — bringing the total to 1.39 billion.
Besides, more than a billion people now check in on Facebook every day. The official DAU total is 1.01 billion, up from 968 million three months ago.
78% of ad revenues from mobile
This quarter Facebook reported $4.5 billion out of $4.29 billion came from advertising, an increase of 45 percent from last year at this time. Last quarter Facebook’s advertising drove revenues of $3.82 billion. However there has been a drop is Payments and other, a trend that has followed since last two quarters.
Undoubtedly, the ad revenues are driven by mobile and even this quarter, mobile ads brought in 78 percent of ad revenue, up two percentage points from last quarter. Last year at this time, 66 percent of Facebook ad revenue came from mobile.
Another good sign is that the advertising revenue by user geography is showing positive growth from low revenue markets such as APAC and rest of the world. While there is a long way to match markets like US, Canada & Europe but there is growth.
8 billion average daily video views
Last quarter, Facebook went silent on videos but this quarter it announced that Facebook is witnessing 8 billion average daily video views from 500 million users. That’s up from just 4 billion video views per day in April. The announcement was made by the CEO Mark Zuckerberg on the call to investors.
From the first half of 2015, Facebook has been quite aggressive in competing with YouTube on product features and also on the PR front. While Facebook left no media space in proving how videos are growing on its network, it also launched five crucial features that strengthen the video arm of Facebook.
However, the earlier news that Facebook Video is receiving 4 billion views a day went through a meltdown, after YouTube star Hank Green questioned Facebook in a blog post titled, “Theft, lies, and Facebook Video”. Hank’s blog post brought forward Facebook’s two big problems around videos –
1. The way Facebook counts views.
2. Freebooting or downloading someone else’s copy-righted material, often from YouTube, and uploading it into Facebook’s native video player.
Post that Facebook has been working hard to solve problems regarding video views and Freebooting. At the same time it has been launching features that will make its video offerings to users and publishers complete. Facebook Video Hub has been a latest offering from the company, which is basically a dedicated hub for those looking to watch video on Facebook that will help “people discover, watch and share videos on Facebook that are relevant to them.”
During a panel at Variety’s Entertainment and Technology Summit, Facebook ad product lead Ted Zagat said that the company expects video to effectively take over the social network in the coming year or two. With these solutions the social networking giant is all set on the right path to give stiff competition to YouTube.