facebook business analysis q2 2015

1. Facebook Business Analysis Q215 Revenues and Prots www.revenuesandprots.com

2. Presentation Outline 2 Overall Revenues And Prots Analysis Business/Geographic Segment Revenues Analysis Key Business Metrics Analysis

3. Facebook Overall Revenues Analysis 3 Revenues (In $ Millions) Q214 Q314 Q414 Q115 Q215 $4,042 $3,543 $3,851 $3,203 $2,910 Revenue YoY Growth Q214 Q314 Q414 Q115 Q215 60.5% 58.9% 49.0% 41.6% 38.9%

4. Facebook Costs Analysis 4 Costs (In $ Millions) Q214 Q314 Q414 Q115 Q215 $305 $274 $330 $259 $197 $626 $620$624 $374 $358 $1,170 $1,062$1,111 $608 $492 $668$654$653 $565 $473 Cost of Revenue Research & Development Expenses Sales & Marketing Expenses General & Administrative Expenses Costs As A Percentage Of Revenue Q214 Q314 Q414 Q115 Q215 7.5% 7.7% 8.6% 8.1% 6.8% 15.5% 17.5% 16.2% 11.7% 12.3% 28.9% 30.0% 28.8% 19.0% 16.9% 16.5%18.5%17.0%17.6%16.3% Cost of Revenue as a % of Total Revenue Research & Development Expenses as a % of Total Revenue Sales & Marketing Expenses as a % of Total Revenue General & Administrative Expenses as a % of Total Revenue

5. Facebook Gross Income Analysis 5 Gross Income (In $ Millions) Q214 Q314 Q414 Q115 Q215 $3,374 $2,889 $3,198 $2,638 $2,437 Gross Margin Q214 Q314 Q414 Q115 Q215 83.5%81.5%83.0%82.4%83.7%

6. Facebook Operating Income Analysis 6 Operating Prot (Loss) (In $ Millions) Q214 Q314 Q414 Q115 Q215 $1,273 $933 $1,133 $1,397$1,390 Operating Margin Q214 Q314 Q414 Q115 Q215 31.5% 26.3% 29.4% 43.6% 47.8%

7. Facebook Net Income Analysis 7 Net Prot (Loss) (In $ Millions) Q214 Q314 Q414 Q115 Q215 $715 $509 $696 $802$788 Net Margin Q214 Q314 Q414 Q115 Q215 17.7% 14.4% 18.1% 25.0%27.1%

8. Facebook Business Segment Revenues Analysis 8 Business Segments Revenues (In $ Millions) Q214 Q314 Q414 Q115 Q215 $215 $226 $257 $246 $234 $3,827 $3,317 $3,594 $2,957 $2,676 Advertising Payments And Other Fees Business Segments Revenue Share Q214 Q314 Q414 Q115 Q215 5.3%6.4%6.7%7.7%8.0% 94.7%93.6%93.3%92.3%92.0% Advertising Payments And Other Fees

9. Facebook Mobile/Desktop Advertising Revenues Analysis 9 Advertising Revenues by Device (In $ Millions) Q214 Q314 Q414 Q115 Q215 $918 $896 $1,114 $1,005 $1,017 $2,909 $2,421$2,480 $1,952 $1,659 Mobile Ad Revenues Desktop Ad Revenues Advertising Revenue Share by Device Q214 Q314 Q414 Q115 Q215 24.0%27.0%31.0%34.0%38.0% 76.0% 73.0% 69.0% 66.0% 62.0% Mobile Ad Revenues Desktop Ad Revenues

10. Facebook Geographic Segment Revenues Analysis 10 Total Revenues by User Geography (In $ Millions) Q214 Q314 Q414 Q115 Q215 $415 $354 $403 $353 $347 $623 $542 $554 $492 $431 $1,037 $908 $1,030 $844 $824 $1,967 $1,739$1,864 $1,514 $1,308 US & Canada Europe Asia Rest Of The World Total Revenues Share by User Geography Q214 Q314 Q414 Q115 Q215 10.3%10.0%10.5%11.0%11.9% 15.4%15.3%14.4%15.4%14.8% 25.7%25.6%26.7%26.4%28.3% 48.7%49.1%48.4%47.3%44.9% US & Canada Europe Asia Rest Of The World

11. Facebook Advertising Revenue Analysis 11 Advertising Revenues (In $ Millions) Q214 Q314 Q414 Q115 Q215 $3,827 $3,317 $3,594 $2,957 $2,676 Advertising Revenue YoY Growth Q214 Q314 Q414 Q115 Q215 67.4% 64.5% 53.3% 46.4% 43.0%

12. Facebook Advertising Revenues Analysis - by User Geography 12 Advertising Revenues by User Geography (In $ Millions) Q214 Q314 Q414 Q115 Q215 $409 $346 $394 $343 $336 $605 $524 $531 $469 $408 $987 $855 $960 $783 $757 $1,826 $1,592 $1,709 $1,362 $1,175 US & Canada Europe Asia Rest Of The World Advertising Revenues Share by User Geography Q214 Q314 Q414 Q115 Q215 10.7%10.4%11.0%11.6%12.6% 15.8%15.8%14.8%15.9%15.2% 25.8%25.8%26.7%26.5%28.3% 47.7%48.0%47.6%46.1%43.9% US & Canada Europe Asia Rest Of The World

13. Facebook Payment and Other Fees Revenue Analysis 13 Payment and Other Fees Revenues (In $ Millions) Q214 Q314 Q414 Q115 Q215 $215 $226 $257 $246 $234 Payment and Other Fees Revenue YoY Growth Q214 Q314 Q414 Q115 Q215 9.3% 12.8% 6.6% -4.6% -8.1%

14. Facebook Payment and Other Fees Revenues Analysis - by User Geography 14 Payment and Other Fees Revenues by User Geography (In $ Millions) Q214 Q314 Q414 Q115 Q215 $6 $8 $9 $10 $11 $18 $18 $23 $23 $23 $50 $53 $70 $61 $67 $141$147$155$152 $133 US & Canada Europe Asia Rest Of The World Payment and Other Fees Revenues Share by User Geography Q214 Q314 Q414 Q115 Q215 2.8%3.5%3.5%4.1%4.7% 8.4%8.0%8.9%9.3%9.8% 23.3%23.5%27.2%24.8%28.6% 65.6%65.0% 60.3%61.8% 56.8% US & Canada Europe Asia Rest Of The World

15. Facebook Daily Active Users (DAUs) Analysis 15 Daily Active Users (DAUs) Worldwide (In Millions) Q214 Q314 Q414 Q115 Q215 968 936 890864 829 Daily Active Users (DAUs) Worldwide - YoY Growth Q214 Q314 Q414 Q115 Q215 18.6% 18.7% 17.6% 16.7% 16.8%

16. Facebook Daily Active Users (DAUs) Analysis - by User Geography 16 Daily Active Users (DAUs) by User Geography (In Millions) Q214 Q314 Q414 Q115 Q215 292 280 263256 244 285270 253242228 228225217212206 164161157155152 US & Canada Europe Asia Rest Of The World Daily Active Users (DAUs) Share by User Geography Q214 Q314 Q414 Q115 Q215 30.2%29.9%29.6%29.6%29.4% 29.4%28.8%28.4%28.0%27.5% 23.6%24.0%24.4%24.5%24.8% 16.9%17.2%17.6%17.9%18.3% US & Canada Europe Asia Rest Of The World

17. Facebook Monthly Active Users (MAUs) Analysis 17 Monthly Active Users (MAUs) Worldwide (In Millions) Q214 Q314 Q414 Q115 Q215 1,490 1,441 1,393 1,3501,317 Monthly Active Users (MAUs) Worldwide - YoY Growth Q214 Q314 Q414 Q115 Q215 14.0% 13.5% 13.4% 12.9% 13.1%

18. Facebook Monthly Active Users (MAUs) Analysis - by User Geography 18 Monthly Active Users (MAUs) by User Geography (In Millions) Q214 Q314 Q414 Q115 Q215 471 453 436423411 496471449426410 311307301296292 213210208206204 US & Canada Europe Asia Rest Of The World Monthly Active Users (MAUs) Share by User Geography Q214 Q314 Q414 Q115 Q215 31.6%31.4%31.3%31.3%31.2% 33.3%32.7%32.2%31.6%31.1% 20.9%21.3%21.6%21.9%22.2% 14.3%14.6%14.9%15.3%15.5% US & Canada Europe Asia Rest Of The World

19. Facebook DAU to MAU Ratio 19 DAU To MAU Ratio Worldwide Q214 Q314 Q414 Q115 Q215 62.9% 64.0% 63.9% 65.0% 65.0% DAU To MAU Ratio by User Geography Q214 Q314 Q414 Q115 Q215 59.4% 60.5% 60.3% 61.8% 62.0% 55.6% 56.8% 56.3% 57.3% 57.5% 70.5% 71.6% 72.1% 73.3% 73.3% 74.5% 75.2% 75.5% 76.7% 77.0% US & Canada Europe Asia Rest Of The World

20. Facebook Mobile Daily Active Users (DAUs) Analysis 20 Mobile Daily Active Users (DAUs) and Total DAUs Worldwide (In Millions) Q214 Q314 Q414 Q115 Q215 968 936 890864 829 844 798 745 703 654 Mobile Daily Active Users Total Daily Active Users Mobile Daily Active Users (DAUs) as a percentage of Total DAUs Worldwide Q214 Q314 Q414 Q115 Q215 87.2%85.3%83.7%81.4%78.9%

21. Facebook Mobile Monthly Active Users (MAUs) Analysis 21 Mobile Monthly Active Users (MAUs) and Total MAUs Worldwide (In Millions) Q214 Q314 Q414 Q115 Q215 1,490 1,441 1,393 1,3501,317 1,314 1,248 1,189 1,124 1,070 Mobile Monthly Active Users Total Monthly Active Users Mobile Monthly Active Users (MAUs) as a percentage of Total MAUs Worldwide Q214 Q314 Q414 Q115 Q215 88.2%86.6%85.4%83.3%81.2%

22. Facebook Mobile DAU to MAU Ratio Analysis 22 Mobile DAU to MAU Ratio Q214 Q314 Q414 Q115 Q215 64.2%63.9%62.7%62.5%61.1% Overall DAU to MAU Ratio Q214 Q314 Q414 Q115 Q215 65.0%65.0%63.9%64.0%62.9%

23. Facebook Mobile-Only Monthly Active Users (MAUs) Analysis 23 Mobile Only Monthly Active Users (MAUs) Worldwide (In Millions) Q214 Q314 Q414 Q115 Q215 655 581 526 456 399 Mobile Only Monthly Active Users (MAUs) as a Percentage of Total Mobile MAUs Q214 Q314 Q414 Q115 Q215 49.8% 46.6%44.2% 40.6% 37.3%

24. Facebook Monthly Active Users (MAUs) by Access Device 24 Monthly Active Users (MAUs) by Access Device (In Millions) Q214 Q314 Q414 Q115 Q215 176 193 204226247 659 667 663 668 671 655 581 526 456 399 Mobile Only MAUs Dual Access (Mobile and Desktop) MAUs Desktop Only MAUs Monthly Active Users (MAUs) Share by Access Device Q214 Q314 Q414 Q115 Q215 11.8%13.4%14.6%16.7%18.8% 44.2%46.3%47.6%49.5%50.9% 44.0% 40.3%37.8% 33.8% 30.3% Mobile Only MAUs as % of Total MAUs Dual Access (Mobile and Desktop) MAUs as % of Total MAUs Desktop Only MAUs as % of Total MAUs

25. Facebook ARPU Analysis - Overall Revenues 25 Average Revenue Per User (ARPU) Worldwide - Overall Revenues Q214 Q314 Q414 Q115 Q215 $2.8 $2.5 $2.8 $2.4 $2.2 Average Revenue Per User (ARPU) by User Geography - Overall Revenues Q214 Q314 Q414 Q115 Q215 $0.9 $0.8 $0.9 $0.9 $0.9 $1.3 $1.2 $1.3 $1.2 $1.1 $3.4 $3.0 $3.5 $2.9 $2.8 $9.3 $8.3 $9.0 $7.4 $6.4 US & Canada Europe Asia Rest Of The World

26. Facebook ARPU Analysis - Advertising Revenues 26 Average Revenue Per User (ARPU) Worldwide - Advertising Revenues Q214 Q314 Q414 Q115 Q215 $2.6 $2.3 $2.6 $2.2 $2.1 Average Revenue Per User (ARPU) by User Geography - Advertising Revenues Q214 Q314 Q414 Q115 Q215 $0.9 $0.8 $0.9 $0.8 $0.8 $1.3 $1.1 $1.2 $1.1 $1.0 $3.2 $2.8 $3.2 $2.7 $2.6 $8.6 $7.6 $8.3 $6.6 $5.8 US & Canada Europe Asia Rest Of The World

27. Facebook ARPU Analysis - Payment Revenues 27 Average Revenue Per User (ARPU) Worldwide - Payment Revenues Q214 Q314 Q414 Q115 Q215 $0.15 $0.16 $0.19 $0.18$0.18 Average Revenue Per User (ARPU) by User Geography - Payment Revenues Q214 Q314 Q414 Q115 Q215 $0.01 $0.02 $0.02$0.02 $0.03 $0.04 $0.04 $0.05$0.06 $0.06 $0.16 $0.17 $0.23$0.21 $0.23 $0.67$0.70 $0.75$0.74 $0.66 US & Canada Europe Asia Rest Of The World

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facebook business analysis q2 2015

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