Facebook Management indicated that growth in 1Q was driven by increasing advertiser demand (3mn active advertisers, up from 2.5mn last quarter), growing users/engagement (66% DAU/MAU, up from 65% in 4Q), and higher ad loads (up significantly from 5% two years ago). Ad formats and products that drove ad revenue performance in 1Q include video, carousel ads, lead ads, and dynamic product ads.
User monetization increased with ARPU (average revenue per user) up 33% y/y to $3.32 (note that this now includes Instagram and
Facebook Audience Network revenues). Facebook indicated that its users spend 50 minutes a day across its sites (FB, Instagram and Messenger) and that engagement is growing across multiple metrics.
The company will continue to invest in 2016 (in Instagram, core Facebook including video, Messenger, WhatsApp, and Oculus) Strong video usage growth and steps to help monetize Facebook?s strong messaging platforms could build excitement on next year?s revenue growth.
