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Will Data Scandals Impact Facebook's (FB) Q2 User Growth?
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Facebook saw its stock price hit yet another new high Tuesday one day before the social media company is set to report its second-quarter financial results. Investors are likely looking at top and bottom line estimates in preparation, but what they also need to understand is what to expect from Facebook’s user growth amid the wave of data scandal backlash.
Facebook has received an array of push back regarding its handling of user data from the media to the U.S. government, and more importantly users. Yet, the company’s business appears nearly as strong as ever. Facebook is projected to see its Q2 revenues jump by 44% to $13.43 billion, based on our current Zacks Consensus Estimate. At the bottom of the income statement, the company’s adjusted quarterly earnings are expected to climb by 32.6% to reach $1.75 per share (also read: Should You Buy Facebook Stock Ahead of Q2 Earnings?).
Mark Zuckerberg’s company closed the first quarter with 2.2 billion monthly active users, which marked a 13% climb from the year-ago period. Meanwhile, the firm’s daily active user total popped by the same percentage to hit 1.45 billion. Investors should also note that Facebook’s photo-sharing app Instagram recently hit 1 billion MAUs, topping Twitter and Snapchat’s (SNAP - Free Report) combined user totals.
Now the question is how many users will Facebook add in the second quarter as it battles its image problem? To prepare for this, we can turn to our exclusive non-financial metrics consensus estimate file.
The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Q2 User Growth
Facebook’s daily active user total is expected to hit 1.48 billion in the second quarter, according to these NFM consensus estimates. This would mark a roughly 12% surge from the 1.32 billion the company posted in the year-ago period and a 2% sequential jump.
The company is projected to report similar, approximately 12% MAU growth, to close the quarter with 2.25 billion users, up from 2.01 billion MAUs in the second quarter of 2017. Furthermore, our NFM Facebook MAU estimate would represent a 2% climb from last quarter.
Investors will also want to know where this user growth is coming. Facebook is expected to close the quarter with 186 million DAUs in the U.S. and Canada, up just around 1.6% from 183 million. The firm’s growth in this region has slowed over the last few years, as it becomes incredibly saturated. For reference, FB closed the first quarter of 2016 with 173 million DAUs. Luckily, Facebook has been able to expand much more quickly elsewhere.
Facebook is expected to report 550 million daily active users in its Asia-Pacific region (this doesn’t include China, where Facebook is still banned), which would mark over a 21% surge from the year-ago period’s 453 million.
Facebook’s DAUs in the “Rest of World” are projected to climb by over 11% to hit 468 million, up from 419 million. Meanwhile, Facebook’s European growth is expected to slow down, with its daily active user total expected to reach 279 million, up roughly 3% from 271 million.
The social media company is expected to see similar year-over-year percentage gains for its MAUs across its four regions.
European Woes
At this point investors don’t seem to have that much to worry about in terms of user growth, with FB’s DAU and MAU totals projected to climb at a similar pace to Q1.
But, Europe presents a possible cause for concern, with Facebook’s DAUs expected to fall from 282 million last quarter to 279 million in Q2. The company is also projected to post a sequential decline in monthly active users, with our NFM estimate calling for its MAUs to slip from 377 million to 374 million.
Make sure to check back here for our full analysis of Facebook’s actual Q2 results after market close on Wednesday!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Will Data Scandals Impact Facebook's (FB) Q2 User Growth?
Facebook saw its stock price hit yet another new high Tuesday one day before the social media company is set to report its second-quarter financial results. Investors are likely looking at top and bottom line estimates in preparation, but what they also need to understand is what to expect from Facebook’s user growth amid the wave of data scandal backlash.
Facebook has received an array of push back regarding its handling of user data from the media to the U.S. government, and more importantly users. Yet, the company’s business appears nearly as strong as ever. Facebook is projected to see its Q2 revenues jump by 44% to $13.43 billion, based on our current Zacks Consensus Estimate. At the bottom of the income statement, the company’s adjusted quarterly earnings are expected to climb by 32.6% to reach $1.75 per share (also read: Should You Buy Facebook Stock Ahead of Q2 Earnings?).
Mark Zuckerberg’s company closed the first quarter with 2.2 billion monthly active users, which marked a 13% climb from the year-ago period. Meanwhile, the firm’s daily active user total popped by the same percentage to hit 1.45 billion. Investors should also note that Facebook’s photo-sharing app Instagram recently hit 1 billion MAUs, topping Twitter and Snapchat’s (SNAP - Free Report) combined user totals.
Now the question is how many users will Facebook add in the second quarter as it battles its image problem? To prepare for this, we can turn to our exclusive non-financial metrics consensus estimate file.
The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Q2 User Growth
Facebook’s daily active user total is expected to hit 1.48 billion in the second quarter, according to these NFM consensus estimates. This would mark a roughly 12% surge from the 1.32 billion the company posted in the year-ago period and a 2% sequential jump.
The company is projected to report similar, approximately 12% MAU growth, to close the quarter with 2.25 billion users, up from 2.01 billion MAUs in the second quarter of 2017. Furthermore, our NFM Facebook MAU estimate would represent a 2% climb from last quarter.
Investors will also want to know where this user growth is coming. Facebook is expected to close the quarter with 186 million DAUs in the U.S. and Canada, up just around 1.6% from 183 million. The firm’s growth in this region has slowed over the last few years, as it becomes incredibly saturated. For reference, FB closed the first quarter of 2016 with 173 million DAUs. Luckily, Facebook has been able to expand much more quickly elsewhere.
Facebook is expected to report 550 million daily active users in its Asia-Pacific region (this doesn’t include China, where Facebook is still banned), which would mark over a 21% surge from the year-ago period’s 453 million.
Facebook’s DAUs in the “Rest of World” are projected to climb by over 11% to hit 468 million, up from 419 million. Meanwhile, Facebook’s European growth is expected to slow down, with its daily active user total expected to reach 279 million, up roughly 3% from 271 million.
The social media company is expected to see similar year-over-year percentage gains for its MAUs across its four regions.
European Woes
At this point investors don’t seem to have that much to worry about in terms of user growth, with FB’s DAU and MAU totals projected to climb at a similar pace to Q1.
But, Europe presents a possible cause for concern, with Facebook’s DAUs expected to fall from 282 million last quarter to 279 million in Q2. The company is also projected to post a sequential decline in monthly active users, with our NFM estimate calling for its MAUs to slip from 377 million to 374 million.
Make sure to check back here for our full analysis of Facebook’s actual Q2 results after market close on Wednesday!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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