Slide 1: Facebook Q2 2019 Results
Facebook Q2 2019 Results investor.fb.com
Slide 2: Daily Active Users (DAUs)
Daily Active Users (DAUs) In Millions Rest of World Asia-Pacific 1,587 Europe 1,562 1,495 1,523 US & Canada 1,449 1,471 1,368 1,401 1,325 490 499 470 478 453 461 433 441 419 577 600 615 499 529 546 561 453 476 271 274 277 282 279 278 282 286 286 183 185 184 185 185 185 186 186 187 Q2'17 Q3'17 Q4'17
Slide 3: Monthly Active Users (MAUs)
Monthly Active Users (MAUs) In Millions Rest of World Asia-Pacific 2,414 2,375 Europe 2,320 2,234 2,271 US & Canada 2,196 2,129 2,072 2,006 782 768 736 750 705 723 692 675 654 947 981 1,003 873 894 917 794 828 756 360 364 370 377 376 375 381 384 385 236 239 239 241 241 242 242 243 244 Q2'17 Q3'17 Q4
Slide 4: Revenue
Revenue In Millions $16,914 $16,886 Payments and Other Fees Advertising $274 $262 $15,077 $165 $13,727 $12,972 $13,231 $188 $193 $193 $11,966 $171 $10,328 $9,321 $186 $157 $16,640 $16,624 $14,912 $13,038 $13,539 $12,779 $11,795 $10,142 $9,164 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 4
Slide 5: Revenue by User Geography
Revenue by User Geography In Millions Rest of World $16,914 $16,886 Asia-Pacific $1,571 $1,650 Europe $15,077 US & Canada $13,727 $1,437 $13,231 $2,759 $3,012 $12,972 $1,325 $1,271 $11,966 $1,362 $2,682 $1,172 $2,422 $10,328 $2,059 $2,316 $4,151 $4,109 $9,321 $1,054 $2,091 $954 $3,650 $1,760 $3,313
Slide 6: Advertising Revenue by User Geography
Advertising Revenue by User Geography In Millions Rest of World $16,640 $16,624 Asia-Pacific $1,565 $1,644 Europe $14,912 US & Canada $1,430 $13,539 $13,038 $2,742 $2,985 $12,779 $1,320 $1,264 $11,795 $1,357 $2,670 $1,164 $2,406 $10,142 $2,048 $2,297 $4,087 $4,043 $9,164 $1,047 $2,080 $3,609 $947 $1
Slide 7: Payments & Other Fees Revenue by User Geography
Payments & Other Fees Revenue by User Geography In Millions Rest of World $274 Asia-Pacific $6 $262 Europe $17 $6 US & Canada $27 $64 $193 $193 $188 $66 $186 $7 $5 $7 $5 $11 $171 $19 $16 $11 $165 $157 $8 $11 $7 $7 $12 $11 $47 $54 $55 $47 $44 $33 $41 $187 $163 $121 $121 $114 $120 $106 $108 $105 Q2'17
Slide 8: Average Revenue per User (ARPU)
Average Revenue per User (ARPU) Payments and Other Fees Worldwide US & Canada $7.37 $34.86 $33.27 Advertising $7.05 $30.12 $0.12 $6.42 $0.77 $5.97 $6.09 $0.11 $27.61 $0.67 $0.07 $25.91 $0.43 $0.09 $0.08 $0.50 $0.47 $7.25 $6.94 $34.09 $32.60 $6.01 $6.35 $27.11 $29.69 $5.89 $25.43 Q2'18 Q3'18 Q4'18 Q1
Slide 9: Expenses as a % of Revenue
Expenses as a % of Revenue General & Administrative Marketing & Sales Research & Development 27% 19% Cost of Revenue 7% 6% 6% 6% 7% 5% 14% 14% 13% 14% 5% 13% 15% 12% 11% 11% 20% 19% 19% 19% 19% 17% 21% 20% 15% 18% 19% 20% 16% 17% 17% 13% 14% 12% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19
Slide 10: Income from Operations
Income from Operations In Millions $7,820 $7,352 $5,863 $5,781 $5,449 $5,122 $4,626 $4,401 $3,317 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the FT
Slide 11: Operating Margin
Operating Margin 57% 50% 47% 46% 46% 44% 42% 27% 22% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the FTC settlement as discussed in our Q1 2019 and
Slide 12: Effective Tax Rate
Effective Tax Rate ($ in millions) Q2'17 Q3'17 Q4'17* Q1'18 Q2'18 Q3'18 Q4'18 Q1'19** Q2'19*** Income before provision for income taxes $ 4,488 $ 5,236 $ 7,462 $ 5,610 $ 5,868 $ 5,912 $ 7,971 $ 3,482 $ 4,832 Provision for income taxes 594 529 3,194 622 762 775 1,089 1,053 2,216 Effective Tax Rate 13
Slide 13: Net Income
Net Income In Millions $6,882 $5,106 $5,137 $4,988 $4,707 $4,268 $3,894 $2,616 $2,429 Q2'17 Q3'17 Q4'17* Q1'18 Q2'18 Q3'18 Q4'18 Q1'19** Q2'19*** *In December 2017, the Tax Act was enacted and significantly impacted the U.S. tax law. As a result of this legislation, our fourth quarter and full year
Slide 14: Diluted Earnings Per Share
Diluted Earnings Per Share $2.38 $1.74 $1.76 $1.69 $1.59 $1.44 $1.32 $0.85 $0.91 Q2'17 Q3'17 Q4'17* Q1'18 Q2'18 Q3'18 Q4'18 Q1'19** Q2'19*** *In December 2017, the Tax Act was enacted and significantly impacted the U.S. tax law. As a result of this legislation, our fourth quarter and full year 2017
Slide 15: Capital Investments
Capital Investments In Millions $13,915 $3,775 $3,459 $6,733 Q2'18 Q2'19 2017 2018 Quarterly Annual Capital investments for periods presented were related to net purchases of property and equipment and principal payments on finance leases. 15
Slide 16: Appendix
Appendix
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Net cash provided by operating activities $ 5,360 $ 6,128 $ 7,670 $ 7,860 $ 6,299 $ 7,496 $ 7,684 $ 9,308 $ 8,615 Less: Purchases of property and equipment, net 1,444 1,755 2,262 2,812 3,459 3,343 4,3
Slide 18: Limitations of Key Metrics and Other Data
Limitations of Key Metrics and Other Data The numbers for our key metrics, which include our daily active users (DAUs), monthly active users (MAUs), and average revenue per user (ARPU), are calculated using internal company data based on the activity of user accounts. While these numbers are based o
Slide 19: Facebook Q2 2019 Results
Facebook Q2 2019 Results investor.fb.com