Facebook reported another great quarter with mobile advertising paying off for them in a huge way yet again. Facebook while their earnings are impressive, I find the most interesting fact being they have more than 2.1 billion people now use Facebook, Instagram, WhatsApp, or Messenger every day on average. Facebooks says that more than 2.7 billion people use at least one of their services each month. That is a huge userbase and represents their 8% userbase growth year over year.
Facebooks revenues were up $16.9 billion as advisors flock to the social networks reported 2.1 billion daily active users with 2.41 billion monthly active users. According to Facebook, the average user spends about $7.05 cents on ads. Facebook did make mention of an additional $2.0 billion in connection with our settlement with the FTC which included legal expenses.
What I find interesting is Facebook and Google combined account for about 51% of the global digital ad market space on the internet. Facebooks bet on mobile has paid off through the years with mobile advertising revenue representing approximately 94% of advertising revenue for the second quarter of 2019. This is a 3% jump up from the second quarter of 2018.
Facebook who as of late has been hit with many privacy and security concerns does not seem to be having any issues with revenues as they reported a great quarter. Mark Zuckerberg, Facebook founder, and CEO said on the earnings call “We are investing in building stronger privacy protections for everyone and on delivering new experiences for the people who use our services.”
Facebook did mention in closing that they were informed in June by the FTC that it had opened an antitrust investigation of our company and on July 2019, the Department of Justice announced that it will begin an antitrust review of market-leading online platforms.
Facebook does have some hurdles to get over coming up but they still are having great quarters and are very financially stable and growing at a fast pace.