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Q2-16: Facebook ad revenue up 63percent, income triples

Q2-16: Facebook ad revenue up 63percent, income triples

BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 63percent year-on year (Y-o-y) for the second quarter ended 30 June 2016 (Q2-16, current quarter) at $6,239 million as compared to $3,827 million in Q2-15. Advertisement revenue growth in percentage terms was led by the US and Canada (68.5percent growth) and the A-Pac (66.8percent growth) regions. Ad revenue share by geography in Q2-16 was: US and Canada –49.3 percent; Europe – 24.8percent; A-Pac – 16.2 percent, and the rest of the world (ROW) – 9.7percent.

Facebook reported 59.2 percent growth in total revenue at $6,436 million as compared to $4,042 million in the corresponding quarter of the previous year.The social media giant’s net income in Q2-16 almost tripled (by 2.86 times) year-on-year (y-o-y) to $2,055 million, as compared to $719 million in Q2-15.

Growth in revenue in percentage terms was also led by growth from the US and Canada (63.3percenty-o-y growth) and the A-Pac (64.5percenty-o-y growth) geographical regions. A major share of Facebook’s revenue (49.9 percent) came from the US and Canada region, while the A-Pac regioncontributed 15.9percentto revenue in Q2-16. Europe’s contribution to Facebook revenue was 24.6percent and ROW contributed 9.5percent during the same period.

“Our community and business had another good quarter,” said Facebook founder and CEOMark Zuckerberg. “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.”

Please refer to Fig 1 for Facebook’s revenue and Fig 2 for Facebook’s advertisement revenue breakup by geography below.


It is evident from Fig 2 below that the share of revenue from US and Canada, and A-Pac regions has been increasing, while share of revenue from Europe and ROW has been declining, though in Q2-16, revenue share from the ROW has shown a slight resurgence.

Facebook’s daily average users (DAU) increased 16.5 percenty-o-yin the current quarter to 1,128 million as compared to 968 million in Q2-15. For the current quarter,A-Pac (21.4percenty-o-ygrowth) and the ROW (21.6percenty-o-ygrowth) regions lead DAU growth in percentage terms. In Q2-16 DAU from US and Canada grew by 6.7percenty-o-y, while Europe DAU grew 10.5 percenty-o-y. Please refer to Fig 3 below.

The proportion of people logging on to Facebook on their mobiles has grown to 91.6percent in the current quarter as compared to 87.2percent in Q2-15 and 90.7percent in the immediate trailing quarter (Q1-16).

The curve B in Fig 3 below signifies the ratio of DAUs’ to Monthly Average Users (MAU), while curve A indicates the percentage of Mobile DAUs’ to DAUs’. Mobile DAU’s in Q2-16 have increased 22.4percenty-o-y to 1,033 million as compared to 844 million in Q2-15.



Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $3.82 as compared to $2.76in Q2-15 and $3.32 in Q1-16. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $14.34 in the current quarter. Corresponding numbers for other regions for Q2-16 were Europe $4.72; A-Pac $1.77; ROW $1.13.


Tarachand Wanvari

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