Facebook Inc (NASDAQ:FB)’s US ARPU jumps 50% to $9.86


Facebook Inc (NASDAQ:FB)’s average revenue per user (ARPU) in the U.S. rose 50% in 3Q2015 to $9.86 compared to the same period last year. The overall ARPU in the quarter was $10.49, coming above $7.39 in the same quarter a year ago. Facebook reported 1.55 billion monthly users with daily users surpassing 1.01 billion.

Facebook Inc (NASDAQ:FB)’s ad efforts are paying off domestically and internationally. Domestically, the company saw its ARPU rise sharply by 50% to reach $9.86, thus a new milestone for the operator of the largest social network in the planet.

Steady ARPU gain in the U.S.

Facebook’s US ARPU has been rising steadily over the last five quarters with a slight dip only being reported in 1Q2015. The U.S. ARPU stood at $6.64 at the end of 3Q2014, jumped to $8.26 in 4Q2014 but plunged to $762 in 1Q2015. However, a sharp recovery in the U.S. ARPU was registered in 2Q2015 with the metric being reported at $8.63. A further uptick has pushed the metric to $9.86 in the latest reported quarter.

Auto-play video ads

The sharp increase in U.S. ARPU comes on the back of recent efforts by Facebook to bolster its advertising business. The company has been aggressive with video advertising with implementations such as auto-play video ads that attract lucrative rates. Facebook’s growing interest in video advertising is happening at a time when more marketers are shifting their video advertising dollars to digital platforms from traditional television.

Total revenue in 3Q

Facebook’s improving advertising income culminated in overall revenue of $4.5 billion in the 3Q, handily beating the consensus estimate of $4.37 billion. Adjusted EPS for the quarter came in at $0.57, better than the consensus estimate of $0.52.

Jump in subscribers

Facebook Inc (NASDAQ:FB)’s subscriber numbers also improved with monthly active users reaching 1.55 billion and daily users exceeding 1 billion. The company had 1.49 billion monthly active users and 968 million daily users at the end of the previous quarter.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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