Take-away: return to growth in Europe, approaching saturation in N-America.
- DAU: slight growth in N-America, return to growth in Europe. Higher growth in Asia and RoW.
- MAU: same, except stable in N-America.
- DAU/MAU ratio almost stable at 65.6%.
ARPU
Take-away: growth still high, payments making a leap in N-America.
- Advertising: highest growth in N-America, down just slightly
- Payments: big jump in N-America (+51.0%), less in Europe (+13.3%).
Growth
Take-away: growth down just slightly qoq, mobile ads still growing bigger, Oculus (and Portal) starting to become meaningful.
- Overall growth was down to 30.4%.
- By source: mobile ads up to 91.5%, desktop ads down to 6.9%, payments and other up to 1.6%.
- By geography: N-America up (49.9%), Europe up (24.5%), Asia down (16.3%), RoW down (9.3%)
- Geographic area yoy growth was down a few points from 18Q3, most of all in Europe.
- Hence yoy revenue contribution from Europe was down, but qoq it was up.
- Advertising growth (30.2%) was down from 18Q3.
- Mobile ads growth down slightly (+36.1%).
- Desktop ads growth down sharply (-17.1%).
- Mobile/desktop now 93/7.
- Geographic growth similar to overall geographic growth.
- Payments and Other Fees was up sharply (+42.0%), probably of Oculus (and Portla) sales (less on reduced desktop games).
- Sharp growth in N-America and Asia (both 54.5%). Europe much slower (+18.5%). RoW still down (-14.3%).
- Contribution to total revenue still small but up (1.6%).
Margins
Take-away: efforts directed at fake news and privacy take a toll; hardware has lower margins.
- Gross margin 83.5% (down from 87.6% last year). Probably on higher scrutiny expenses and lower margins on hardware.
- EBIT margin 46.2% (down from 56.7% last year). Mainly up from increased Marketing and Sales (14.6% of sales vs. 10.6% last year).
- Employee count at 35,587 (+1,981 qoq, +42% yoy).
- Productivity: revenue per employee $163k (down from $179k last year).
