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Facebook’s Audience Metrics: What You Should Know

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Facebook boasts more than 1.4 billion daily users

Facebook (FB) closed 4Q17 with more daily and monthly users overall than it started with at the beginning of the quarter. The company’s DAUs (daily active users) averaged slightly more than 1.4 billion in 4Q17 compared to 1.37 billion in 3Q17 and 1.23 billion in 4Q16. Wall Street analysts on average expected it to close 4Q17 with 1.41 billion DAUs, a target that it met.

The company’s MAUs (monthly active users) averaged 2.13 billion in 4Q17 compared to 2.07 billion in 3Q17 and 1.86 billion a year ago. Analysts were expecting Facebook to exit 4Q17 with 2.13 billion MAUs, which it did.

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Other platforms have 1.3 billion monthly users

The above metrics are for Facebook’s flagship social media platform, but we also know that the company has other digital platforms, including Instagram, WhatsApp, and Messenger. They have between 800 million and 1.3 billion monthly users each. Instagram is Facebook’s direct competitor for Snap’s (SNAP) Snapchat since they are both photo-sharing apps (applications).

The benefit of big numbers

For social media companies Facebook, Twitter (TWTR), and Snap, user metrics are watched closely by investors because they show a company’s ability to attract and retain advertisers. Given Facebook’s vast audience size of more than 5 billion monthly active users when combined with its other digital platforms, it has typically attracted more advertising dollars than its social media counterparts Twitter and Snap.

Its huge audience has also provided an opportunity for Facebook to expand beyond social media to areas such as mobile payment and e-commerce to challenge the likes of eBay (EBAY) and Amazon (AMZN).

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