Facebook (FB - Free Report) reported fourth-quarter 2018 earnings of $2.38 per share that beat the Zacks Consensus Estimate by a whopping 21 cents. Moreover, revenues of $16.91 billion comfortably surpassed the Zacks Consensus Estimate of $16.40 billion.
Earnings surged 65.1% from the year-ago quarter on revenue growth of 30.4% (33.1% at constant currency).
Facebook estimates that more than 2.7 billion people now use its “Family” of services, which includes Facebook, WhatsApp, Instagram and Messenger, on a monthly basis. Moreover, more than 2 billion people use at least one of its services daily, on average.
Geographically, Asia-Pacific was the strongest region, with revenues growing 34% year over year, followed by the United States & Canada’s 32.5%, and Europe’s 27.7%. Rest of the World’s (RoW) revenues increased 23.6%.
Average Revenue per User (ARPU) growth was strongest in the United States & Canada, up 30.3% year over year, followed by Europe’s 23.9% growth. RoW and Asia-Pacific grew 13.4% and 16.5%, respectively. Worldwide ARPU increased 19.3% to $7.37.
Advertising revenues soared 30.2% year over year to $16.64 billion. Asia-Pacific and the United States & Canada were the strongest regions, growing 34% and 31.9%, respectively. Advertising revenues in the Europe and RoW grew 27.9% and 23.8%, respectively.
Payments and other fees jumped 42% year over year to $274 million, driven by sales of Oculus Go and launch of Portal.
Asia-Pacific: Fastest Growing Market
Daily Active Users (DAUs) were 1.523 billion, up 122 million year over year and 28 million sequentially, and represented 66% of MAUs. Asia-pacific was Facebook’s fastest growing market in the quarter, driven by growth in India, Indonesia and the Philippines.
Asia-Pacific DAUs increased 78 million year over year and 16 million sequentially to 577 million. RoW DAUs were 478 million, up 37 million from the year-ago quarter and 8 million sequentially.
DAUs in Europe increased 4 million sequentially to 282 million. On a year-over-year basis, the figure increased 5 million. U.S. & Canada DAUs were 186 million, up 2 million on a year-over-year basis and 1 million on a sequential basis.
Monthly active users (MAUs) were up 191 million on a year-over-year basis and 49 million sequentially to 2.320 billion.
Asia-Pacific MAUs increased 119 million year over year and 30 million sequentially to 947 million. RoW MAUs were 750 million, up 58 million from the year-ago quarter and 14 million sequentially.
Moreover, MAUs in Europe increased 6 million sequentially to 381 million. On a year-over-year basis, the figure increased 11 million. MAUs in the United States & Canada grew 3 million on a year-over-year basis but remained flat sequentially.
Facebook, Inc. Price, Consensus and EPS Surprise