Slide 1: Facebook Q4 2019 Results
Facebook Q4 2019 Results investor.fb.com
Slide 2: Facebook Daily Active Users (DAUs)
Facebook Daily Active Users (DAUs) In Millions 1,495 Rest of World Asia-Pacific Europe US & Canada DAUs/MAUs Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 66% 66% 66% 66% 66% 66% 66% 66% 66% Please see Facebook's most recent quarterly or annual report filed with the SEC for definitions of us
Slide 3: Facebook Monthly Active Users (MAUs)
Facebook Monthly Active Users (MAUs) In Millions 2,498 2,375 2,271 Rest of World Asia-Pacific Europe US & Canada Please see Facebook's most recent quarterly or annual report filed with the SEC for definitions of user activity used to determine the number of our Facebook DAUs and MAUs. The numbers fo
Slide 4: Facebook Average Revenue per User (ARPU)
Facebook Average Revenue per User (ARPU) $41.41 $13.21 $10.98 $10.70 $9.55 Worldwide US & Canada Europe $2.11 Other Advertising Asia-Pacific Rest of World Please see Facebook's most recent quarterly or annual report filed with the SEC for the definition of ARPU. Revenue by Facebook user geography is
Slide 5: Family Daily Active People (DAP)
Family Daily Active People (DAP) In Billions DAP/MAP Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 77% 78% 78% 78% 78% We define a daily active person (DAP) as a registered and logged-in user of Facebook, Instagram, Messenger, and/or WhatsApp (collectively, our “Family” of products) who visited at least one of thes
Slide 6: Family Monthly Active People (MAP)
Family Monthly Active People (MAP) In Billions We define a monthly active person (MAP) as a registered and logged-in user of Facebook, Instagram, Messenger, and/or WhatsApp (collectively, our “Family” of products) who visited at least one of these Family products through a mobile device application
Slide 7: Family Average Revenue per Person (ARPP)
Family Average Revenue per Person (ARPP) Other Advertising We define average revenue per person (ARPP) as our total revenue during a given quarter, divided by the average of the number of MAP at the beginning and end of the quarter. While ARPP includes all sources of revenue, the number of MAP used
Slide 8: Revenue
Revenue In Millions Other Advertising 8 8
Slide 9: Revenue by Facebook User Geography
Revenue by Facebook User Geography In Millions Rest of World Asia-Pacific Europe US & Canada Revenue by Facebook user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from
Slide 10: Advertising Revenue by Facebook User Geography
Advertising Revenue by Facebook User Geography In Millions Rest of World Asia-Pacific Europe US & Canada Revenue by Facebook user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation d
Slide 11: Other Revenue by Facebook User Geography
Other Revenue by Facebook User Geography In Millions Rest of World Asia-Pacific Europe US & Canada Revenue by Facebook user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs
Slide 12: Expenses as a Percentage of Revenue
Expenses as a Percentage of Revenue 27% 19% General & Administrative Marketing & Sales Research & Development Cost of Revenue *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 U.S. Federal Trade Commission
Slide 13: Income from Operations
Income from Operations In Millions *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 Q2 2019 Press Releases. 13 13
Slide 14: Operating Margin
Operating Margin *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 Q2 2019 Press Releases. Excluding these expenses, our operating margin would have been 20 pe
Slide 15: Effective Tax Rate
Effective Tax Rate In Millions, Except for Percentages Q4’17* Q1’18 Q2’18 Q3’18 Q4’18 Q1’19** Q2’19*** Q3’19 Q4’19 Income before provision for income taxes $ 7,462 $ 5,610 $ 5,868 $ 5,912 $ 7,971 $ 3,482 $ 4,832 $ 7,329 $ 9,169 Provision for income taxes 3,194 622 762 775 1,089 1,053 2,216 1,238 1,8
Slide 16: Net Income
Net Income In Millions *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 provision for income taxes increased by $2.27 billion, which impacted our net income. **Includes a $3.0 billion legal
Slide 17: Diluted Earnings Per Share
Diluted Earnings Per Share *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 provision for income taxes increased by $2.27 billion, which impacted our diluted earnings per share (EPS) for suc
Slide 18: Capital Expenditures
Capital Expenditures In Millions Quarterly Annual Capital expenditures for periods presented were related to net purchases of property and equipment and principal payments on finance leases. 18 18
Slide 19: Appendix
Appendix FACEBOOK
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation In Millions Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Net cash provided by operating activities $ 7,670 $ 7,860 $ 6,299 $ 7,496 $ 7,684 $ 9,308 $ 8,615 $ 9,307 $ 9,083 Less: Purchases of property and equipment, net 2,262 2,812 3,459 3,343 4,366 3,837 3,633 3
Slide 21: Limitations of Key Metrics and Other Data
Limitations of Key Metrics and Other Data The numbers for our key metrics are calculated using internal company data based on the activity of user accounts. We have historically reported the numbers of our daily active users (DAUs), monthly active users (MAUs), and average revenue per user (ARPU) (c
Slide 22: Limitations of Key Metrics and Other Data (Cont'd)
Limitations of Key Metrics and Other Data (Cont'd) Family Metrics Many people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual product. Accordingly, for our Family metrics, we do not seek to count the total number
Slide 23: Limitations of Key Metrics and Other Data (Cont'd)
Limitations of Key Metrics and Other Data (Cont'd) User Geography Our data regarding the geographic location of our users is estimated based on a number of factors, such as the user's IP address and self-disclosed location. These factors may not always accurately reflect the user's actual location.
Slide 24: Facebook Q4 2019 Results
Facebook Q4 2019 Results investor.fb.com