A-Pac region leads in ad revenue growth for FB in Q3-16


BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 58.5 percent year-on year (y-o-y) for the third quarter ended 30 September 2016 (Q3-16, current quarter) at $6,816 million as compared to $4,299 million in Q3-15. Like the previous quarter, Advertisement revenue growth in percentage terms was led by the A-Pac (63.8 percent growth) and US and Canada (61.8 percent growth) regions. Ad revenue share by geography in Q3-16 was: US and Canada –50.3 percent; Europe – 22.9 percent, A-Pac 16.7 percent and Rest of the world (ROW) 10 percent.

Facebook reported 55.8 percent growth in total revenue at $7,011 million as compared to $4,501 million in the corresponding quarter of the previous year.The social media giant’s net income in Q3-16 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 the A-Pac (63.8 percenty-o-y growth) US and Canada (61.8 percent y-o-y growth) geographical regions. A major share of Facebook’s revenue (50.8 percent) came from the US and Canada region, while the A-Pac region contributed 16.5 percentto revenue in Q3-16. Europe’s contribution to Facebook revenue was 22.9 percent and ROW contributed 9.9 percent during the same period.

"We had another good quarter," said Facebook founder and CEOMark Zuckerberg. "We're making progress puttingvideo first across our apps and executing our 10 year technology roadmap."

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 advertising revenue from US and Canada, and A-Pac regions has been increasing, while share of revenue from Europe and ROW has been declining, though since Q2-16, revenue share from the ROW has shown a slight resurgence.

Facebook’s daily average users (DAU) increased 17.5 percenty-o-yin the current quarter to 1,179 million as compared to 1,007 million in Q3-15. For the current quarter, A-Pac (22.7 percenty-o-y growth) and the ROW (22.4 percenty-o-ygrowth) regions lead DAU growth in percentage terms. In Q3-16 DAU from US and Canada grew by 6.6 percenty-o-y, while Europe DAU grew 9.9 percenty-o-y. Please refer to Fig 3 below.

The proportion of people logging on to Facebook on their mobiles has grown to 92.5 percent in the current quarter as compared to 88.2 percent in Q3-15 and 91.6 percent in the immediate trailing quarter (Q2-16).

Mobile DAU’s in Q3-16 have increased 22 percent y-o-y to 1,091 million as compared to 894 million in Q3-15. Please refer to Fig 3 below.


Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $4.01 as compared to $2.97 in Q3-15 and $3.82. in Q2-16. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $15.65, $10.65 in Q3-15 and $14.34 in Q2-16. Corresponding numbers for other regions for Q3-16 were Europe $4.72; A-Pac $1.89; ROW $1.21. Please refer to Fig 4 for ARPU details.

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