Facebook posts strong figures as Asia Pacific growth continues
On the same day as Facebook received a record $5 billion fine from the FTC for data privacy violations, The Social Network has posted a $16 billion revenue result for Q2 2019, along with yet another increase in active users.
Here’s a breakdown of the numbers.
First off, on active users – Facebook is now up to 2.4 billion monthly actives, with its most significant audience growth once again coming in the Asia Pacific region.
In particular, Facebook has seen major usage growth in India of late. Since 2015, The Social Network has doubled its Indian audience base to more than 300 million, which it’s looking to expand even further with its Libra cryptocurrency, which, reportedly, is specifically focused on functionality designed to maximise appeal in the Indian market.
Facebook’s daily active user figures have also continued to trend upward, with the platform now at 1.59 billion DAU.
But then again, those overall growth stats could mask a larger issue, in that Facebook is reportedly seeing less usage overall, despite people still logging onto the platform at similar rates.
Facebook’s internal data science team has determined that, unless Facebook can slow the trend of users posting more often to Instagram, WhatsApp and Messenger, the company’s main app could eventually face an existential crisis, with social sharing levels to reach a ‘tipping point’ at which Facebook will be on a path to obsolescence.
Of course, Facebook owns those three platforms as well, so it still wins out, though its advertising systems are not as advanced on its other properties.
That said, Facebook has included a note on overall users across its ‘Family of Apps’ within its Q2 update:
“We estimate that more than 2.1 billion people now use Facebook, Instagram, WhatsApp, or Messenger (our “Family” of services”) every day on average, and more than 2.7 billion people use at least one of our Family of services each month.”
For context, the population of the world is 7.7 billion, and some 50% of them have no access to the internet. That frames the scale of Facebook’s global dominance.
In terms of revenue, as noted, Facebook posted a $16.9 billion result for the quarter.
Facebook is generating more money than ever – and despite concerns around data misuse and security, it shows no sign of slowing. There is the aforementioned longer-term issue with transitioning revenue generation to its other platforms to counter any potential declines in its main app, but Facebook is in a strong position to address such, and to ensure that its business operations expand in time with such shifts.
Also worth considering – while Facebook still generates the majority of its income from North America and Europe, it still has plenty of potential in the growing Asia Pacific market.