Week in a Nutshell #29

Welcome to the twenty-ninth episode of the 'Week in a Nutshell’ series,

Facebook and Twitter joined the ranks of other tech giants after sharing their Q2'2015 financial earnings last week. We witnessed once more how important mobile advertising revenue is for these two companies.

Headlines:

  1. Facebook Beats In Q2 With $4.04B Revenue, User Growth Slows To 3.47% QOQ To Hit 1.49B

  2. Twitter Pops 4% After Reporting Better-Than-Expected Q2 Revenue And Profit Along With Anemic User Growth


Facebook Beats In Q2 With $4.04B Revenue, User Growth Slows To 3.47% QOQ To Hit 1.49B

Facebook announced a strong Q2'2015 financial performance and beat the Wall Street expectations.

Q2'2015 Revenue:  $4.04 billion (39% growth vs. $2.91 billion in Q2'2014)
Q2'2015 Profit: $719 million (10% decline vs. $791 million in Q2'2014)

Advertising revenue equals to 94% of Facebook's total revenue and Facebook stated mobile advertising revenue now corresponds to 76% of the total advertising revenue growing from 62% in Q2'2014. 76% put me in absolute awe and I think this is a proof of how fast end-users are shifting into mobile as well as how well Facebook is executing and innovating in the mobile advertising space.

Facebook user stats:

  • 1.49 billion monthly active users (13% growth vs. Q2'2014)
  • 1.31 billion monthly active mobile users (23% growth vs. Q2'2014)
  • 968 million daily active users (17% growth vs. Q2'2014)
  • 844 million daily active mobile users (29% growth vs. Q2'2014)
  • WhatsApp: 800 million monthly active users
  • Messenger: 700 million monthly active users
  • Instagram: 300 million monthly active users

Facebook manages to keep 65% of its monthly active users to be active on daily basis. This is a great sign of the stickiness of Facebook among its user base. Mobile active user growth together with the mobile advertising revenue growth are signalling a great rest of 2015 for Facebook.


Twitter Pops 4% After Reporting Better-Than-Expected Q2 Revenue And Profit Along With Anemic User Growth

Twitter has been going through a turbulence due to a CEO change. However, Twitter managed to exceed the Wall Street expectations for Q2'2015 financial performance.

Q2'2015 Revenue: $502 million (61% growth vs. $312 million in Q2'2014)
Q2'2015 Loss: $137 million ($144 million loss in Q2'2014)

Twitter user stats:

  • 316 million monthly active users (15% growth vs. Q2'2014)
  • 253 million monthly active mobile users

Twitter shared advertising revenue has reached to $452 million. Twitter's focus on improving its monetization initiatives looks like paying off as the advertising revenue went up by 63% compared to Q2'2014. Advertising revenue equals to 90% of Twitter's total revenue and mobile advertising corresponds to the 88% of the total advertising revenue. Just like Facebook, mobile advertising has also become a crucial element of Twitter's monetization strategy. 

Still looking for a success to its former CEO, Dick Costolo, Twitter signals that it will navigate through this turbulent times thanks to the help of its co-founder and interim CEO Jack Dorsey.


We came to the end of the twenty-ninth episode of ‘Week in a Nutshell’ series. Please comment, share, like and/or recommend this post if you enjoyed it.

Thanks,
Birkan