7 Feb

Facebook’s Average Revenue per User: The Trend in 4Q17


Facebook’s ARPU

Facebook’s (FB) worldwide ARPU (average revenue per user) rose to $6.18 in 4Q17 compared to $5.07 in 3Q17 and $4.83 in 4Q16. The changes in ARPU indicate that the metric improved nearly 28% YoY (year-over-year). Its worldwide ARPU increased 26.4% YoY in 3Q17.

Snap’s (SNAP) worldwide ARPU increased 39.3% YoY in 3Q17, while Twitter’s (TWTR) worldwide ARPU declined 7.7% YoY in the same period.

Facebook, Snap, Twitter, and Alphabet’s (GOOGL) Google have something in common: they all depend on digital advertising budgets for most of their revenues.

Facebook’s Average Revenue per User: The Trend in 4Q17

Facebook’s North American daily audience declined

Facebook generates most of its advertising revenues from the United States and Canada. The company’s daily users in those countries declined 1.0 million in 4Q17, while their monthly audience was flat. Despite the decline in daily audience and lack of growth in monthly audience, Facebook’s ARPU in the United States and Canada still grew more than 35% to $26.76 in 4Q17.

Ad price rose 43%

So how did Facebook’s ARPU increase in 4Q17 with a decline in audience, indicated by a fall in usage time by 50 million hours per day? According to the company, that can be explained by seeing how Facebook’s advertising has continued to improve. The company said its average price per ad increased 43% YoY in 4Q17 compared to 35% YoY in 3Q17.

Latest articles

Currently, 33 states and Washington, D.C., have legalized medical cannabis, but it's illegal in Kansas. Even having a small amount is considered a crime.

On November 8, Arkansas joined the other eight states that support the DOJ's decision to approve the proposed T-Mobile (TMUS) and Sprint (S) merger deal.

One thing about Tesla's China Gigafactory that's surprised bulls and bears alike is the impressive progress the facility has made.

Nvidia plans to announce its earnings for Q3 of fiscal 2020 on November 14 after the bell. Analysts expect its revenue to fall 8.2% YoY to $2.92 billion.

In the week that ended on November 8, WTI crude oil prices rose 1.9% and closed at $57.24 per barrel. However, oversupply concerns limited the upside.

Today, Donald Trump tweeted a comment by JPMorgan Chase CEO Jamie Dimon suggesting Trump's China tariffs have hit the country hard.