Facebook (FB) had a solid fourth quarter earnings report as investors focused in on continued strong growth for the company on the revenue front. Revenues grew 49% year-over-year to a $3.85 billion level, while mobile advertising accounted for more than two thirds of the total revenue.
This is pretty incredible considering that mobile was a weak area for FB just a few short years ago. Now, however, mobile is driving Facebook and it accounts for much of the company's solid outlook and incredible rise (read Facebook Revenue Surges on Mobile).
4 Key Metrics
But let's also take a look at some of the company's important metrics and the trends that have been happening here. In the infographic below you can see monthly active users, daily active users, mobile monthly actives, and mobile daily actives.
As you can see, monthly active users worldwide continues to grow at a solid clip, though we are definitely slowing down on this front. The most recent reading from Facebook came in just below 1.4 billion people, a nice jump from the year ago 1.22 billion.
However, it is worth noting that the daily active users metric is getting close to stalling out. The sequential growth rate in this department is just 3%, while year-over-year the growth is still a robust 17.5%. This is definitely an area to monitor in the future though, as a decline here will likely not be well-received by the markets.
Mobile Again the Driver
While we highlighted how important mobile is on the revenue front, the infographic above really does a great job in highlighting just how key mobile users are to the current Facebook growth trajectory. Mobile daily active users are up close to 34% year-over-year, and are now approaching the monthly active user level now.
Mobile monthly users have also truly surged in the past year, and are closing in on the monthly active user metric too. With about 945 million active monthly users a year ago, FB has seen 25% growth here, pushing the total to just under 1.2 billion.
With growth numbers like these in the mobile department, it shouldn't be too surprising for any investor as to why so much focus is put on this type of user and growth in this area of the business. Clearly, this remains the main driver of FB stock, and continued strength in this area will go a long way in pushing FB shares to new heights this year.
Currently, FB has a Zacks Rank #3 (Hold)
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author is long FB.
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