A Complete Guide to Facebook’s Q3 2016 Financial Results, Earnings Call

Beat the Street, indeed: Facebook’s third-quarter-2016 financial results exceeded Wall Street’s projections across the board, and the social network now boasts 1.79 billion monthly active users as of Sept. 30.

Beat the Street, indeed: Facebook’s third-quarter-2016 financial results exceeded Wall Street’s projections across the board, and the social network now boasts 1.79 billion monthly active users as of Sept. 30.

The company posted revenue of $7.01 billion in the third quarter of 2016, up 56 percent from $4.5 billion in the year-ago period and topping analysts’ consensus of $6.92 billion.

GAAP (generally accepted account principles) net income was $2.38 billion, up 166 percent from the third-quarter-2015 total of $896 million, and earnings per share soared to $1.09 from $0.57 in the same quarter last year, again besting analysts’ consensus of $0.97.

Ad revenue of $6.82 billion topped analysts’ consensus of $6.73 billion and was up 59 percent from $4.3 billion in the prior-year quarter, and Facebook said ad revenue grew by more than 50 percent in all regions of the globe.

Mobile ad revenue soared 70 percent year-over-year to $5.73 billion, and mobile represented 84 percent of total ad revenue in the third quarter of 2016, up from 78 percent in the year-earlier period.

FBQ32016Revenue FBQ32016RevenueByUserGeography FBQ32016AdvertisingRevenueByUserGeography FBQ32016NetIncome

Statistics and milestones

  • Facebook reported 1.79 billion MAUs as of Sept. 30, up 16 percent year-over-year.
  • Mobile MAUs were up 20 percent versus the third quarter of 2015, to 1.66 billion.
  • Mobile-only MAUs topped the 1 billion mark for the first time, at 1.055 billion.
  • The third quarter marked a record quarter for adding daily active users year-over-year, as Facebook averaged 1.18 billion DAUs in September, up 17 percent.
  • The social network’s September average of 1.09 billion mobile DAUs was up 22 percent year-over-year.
  • 66 percent of Facebook’s MAUs visit the social network every day.
  • More than 60 million small and midsized businesses are using pages each month.
  • More than 80 percent of pages are active via mobile.
  • The number of users livestreaming via Facebook Live grew fourfold since May, with videos coming from all seven continents and outer space.
  • More than 3 million SMBs have posted videos to Facebook over the past month—organic video posts and ads.
  • Approximately 33,000 bots are live on Facebook Messenger.
  • Instagram has 500 million MAUs and 300 million DAUs.
  • Instagram Stories now has more than 100 million DAUs, as does the photo- and video-sharing network’s Explore tab.
  • More than 1.5 million businesses are using business profiles on Instagram.
  • The 2016 presidential election spurred more than 5.3 billion likes, posts, comments and shares on Facebook over the first nine months of the year, from about 109 million users.
  • The voter-registration link Facebook added to its flagship mobile applications in September helped an estimated 2 million people complete the process, many for the first time.
  • More than 270 million Facebook users generated some 1.5 billion interactions during the 2016 Summer Olympic Games from Rio de Janeiro.
  • More than 40 teams at Facebook, and more than 25 percent of the company’s engineers, are using artificial intelligence to power the products and services they are building.
  • The social network’s Internet.org initiative has connected an estimated 40 million people to the Internet.

We just announced our quarterly results and gave an update on our community's progress in making the world more open and connected.

Our community now has 1.8 billion people. We hit the milestone of 1.2 billion people using our apps every day.

Our biggest focus has been putting video first across our apps. People are creating and sharing more video than ever, so we're building new tools to make it easier to express yourself in creative ways.

The number of people going Live on Facebook at any moment has grown by 4x since May. We launched Instagram Stories less than 3 months ago, and already more than 100 million people are using it every day. We're also building a brand new camera across our apps and we'll be adding even more visual messaging tools over the next few months.

Our community has a lot to be proud of this quarter. Thanks for being a part of this journey to connect the world.

Posted by Mark Zuckerberg on Wednesday, November 2, 2016