A Complete Guide to Facebook’s Q2 2016 Earnings Call

Facebook reported strong second-quarter-2016 financial results Wednesday, with revenue up 59 percent year-over year and net income soaring 186 percent compared with the second quarter of 2015.

Facebook reported strong second-quarter-2016 financial results Wednesday, with revenue up 59 percent year-over year and net income soaring 186 percent compared with the second quarter of 2015.

The company reported revenue of $6.436 billion for the quarter, up 59 percent from $4.024 billion in the year-ago period. Revenue from advertising of $6.239 billion was up 63 percent from $3.827 billion in the second quarter of 2015.

The social network said mobile ad revenue represented approximately 84 percent of total ad revenue for the second quarter, up from 76 percent in the previous-year quarter.

The fastest growth regions for advertising revenue in the second quarter were the U.S. and Canada and the Asia-Pacific region, which saw growth rates of 69 percent and 67 percent, respectively.

Facebook reported net income of $2.055 billion, or $0.71 per share, up 186 percent from $719 million ($0.25) in the second quarter of 2015.

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Statistics and milestones

  • Facebook reported an average of 1.13 billion daily active users as of June 30, up 17 percent from the second quarter of 2015.
  • Mobile DAUs averaged 1.03 billion in the second quarter, up 22 percent year-over-year.
  • Monthly active users were up 15 percent year-over-year, reaching 1.71 billion.
  • Facebook reported 1.57 billion mobile MAUs as of June 30, up 20 percent from the year-earlier period.
  • Time spent per person on Facebook, Instagram and Messenger increased by double-digit percentages year-over-year.
  • There are now more than 60 million monthly active business pages on the social network.
  • More than 1 billion people are using Messenger each month.
  • Instagram has more than 500 million MAUs and more than 300 million DAUs.
  • WhatsApp topped the 1 billion-user mark.
  • More than 4 million 360 photos have been shared on Facebook since the feature’s June debut, with about 1 million being added to that total each week.
  • Facebook users are searching across more than 2.5 trillion posts and conducting more than 2 billion searches each day.
  • Facebook Lite, Facebook’s lightweight Android application for emerging markets, was used by more than 100 million people.
  • More than 1 million people are using virtual reality technology from Oculus VR each month, via Oculus’ Gear VR partnership with Samsung, and more than 300 apps are available for Gear VR via the Oculus Store.

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Advertising

Facebook said more than 85 percent of active business pages use mobile, and 40 percent of active advertisers have created Facebook ads via mobile devices, adding that more than 80 percent of new advertisers in the second quarter started off simple with products such as boosted posts.

The social network also touted dynamic ads, saying that more than 300 million users see them each month, and more than 2.5 billion unique products have been uploaded by marketers.

As always, the bulk of chief operating officer Sheryl Sandberg’s opening remarks involved the social network’s advertising offerings:

We continue to focus on our three priorities: capitalizing on the shift to mobile, growing the number of marketers using our ad products and making our ads more relevant and effective.

People have shifted to mobile, and marketers know they need to catch up. Mobile is no longer a nice to-do, it’s a must-do, and we’re working closely with marketers to help them make this transition.

The best marketers understand that people watch video differently in mobile feeds. The goal is to create what we think of as thumb-stopping creative, videos that grab attention in the first few seconds, even without sound. For example, to drive awareness for Sour Patch Kids Gum, Mondelez International targeted teens with non-chocolate candy interests. Working with VaynerMedia, Carat and the Facebook Creative Shop, it created punchy, 10-second looping videos tailored for Facebook and Instagram. The campaign helped the Sour Patch Kids portfolio beat sales benchmarks for the entire candy industry.