Facebook Q3 2019 Results investor.fb.com Daily Active Users (DAUs) - PowerPoint PPT Presentation

Facebook Q3 2019 Results investor.fb.com

Daily Active Users (DAUs) In Millions Rest of World Asia-Pacific Europe US & Canada 1,623 1,587 1,562 1,523 1,494 1,495 1,471 1,449 1,401 1,368 519 499 490 478 470 461 453 441 433 627 615 600 577 561 546 529 499 476 288 282 282 286 286 274 277 279 278 185 184 185 185 185 186 186 187 189 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 DAUs / MAUs Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 66% 66% 66% 66% 66% 66% 66% 66% 66% Please see Facebook's most recent quarterly or annual report filed with the SEC for definitions of user activity used to determine the number of our DAUs and MAUs. The numbers for DAUs and MAUs do not include Instagram, WhatsApp, or Oculus users unless they would otherwise qualify as such users, respectively, based on their other activities on Facebook. Beginning in Q3 2018, our DAU metrics reflect an update to our calculation methodology to exclude certain data signals that were previously misclassified as user account activity. This update resulted in the removal of a small percentage of accounts for Q3 2018. Excluding this update, DAUs in Q3 2018 would have been: Worldwide: 1,510 million; Rest of World: 474 million; Asia-Pacific: 567 million; Europe: 284 million; and US & Canada: 186 million. Periods prior to Q3 2018 have not been adjusted to reflect this updated methodology because the change was immaterial. 2

Monthly Active Users (MAUs) In Millions Rest of World Asia-Pacific Europe US & Canada 2,449 2,414 2,375 2,376 2,320 2,271 2,270 2,234 2,196 2,129 2,072 802 782 768 750 736 723 705 692 675 1,013 1,003 981 947 917 894 873 828 794 385 387 377 376 375 381 384 364 370 239 239 241 241 242 242 243 244 247 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Please see Facebook's most recent quarterly or annual report filed with the SEC for definitions of user activity used to determine the number of our DAUs and MAUs. The numbers for DAUs and MAUs do not include Instagram, WhatsApp, or Oculus users unless they would otherwise qualify as such users, respectively, based on their other activities on Facebook. Beginning in Q3 2018, our MAU metrics reflect an update to our calculation methodology to exclude certain data signals that were previously misclassified as user account activity. This update resulted in the removal of a small percentage of accounts for Q3 2018. Excluding this update, MAUs in Q3 2018 would have been: Worldwide: 2,280 million; Rest of World: 738 million; Asia-Pacific: 921 million; Europe: 377 million; and US & Canada: 242 million. Periods prior to Q3 2018 have not been adjusted to reflect this updated methodology because the change was immaterial. 3

Revenue In Millions Payments and Other Fees Advertising $17,652 $16,914 $16,886 $269 $274 $262 $15,077 $165 $13,727 $13,231 $12,972 $188 $193 $11,966 $193 $171 $10,328 $186 $17,383 $16,640 $16,624 $14,912 $13,539 $13,038 $12,779 $11,795 $10,142 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 4

Revenue by User Geography In Millions Rest of World Asia-Pacific $17,652 Europe $16,914 $16,886 $1,774 US & Canada $1,571 $1,650 $15,077 $1,437 $13,727 $3,267 $2,759 $13,231 $3,012 $12,972 $1,325 $11,966 $1,362 $1,271 $2,682 $1,172 $2,422 $10,328 $2,059 $2,316 $4,124 $4,151 $4,109 $1,054 $2,091 $3,650 $1,760 $3,313 $3,250 $3,302 $3,036 $2,481 $8,487 $8,433 $8,115 $7,308 $6,667 $6,392 $6,251 $5,667 $5,033 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue disaggregated by geography disclosure in our condensed consolidated financial statements where revenue is disaggregated by geography based on the billing address of our customer. 5

Advertising Revenue by User Geography In Millions Rest of World Asia-Pacific $17,383 Europe $16,640 $16,624 US & Canada $1,766 $1,565 $1,644 $14,912 $1,430 $13,539 $3,243 $2,742 $13,038 $2,985 $12,779 $1,320 $11,795 $1,357 $1,264 $2,670 $1,164 $2,406 $10,142 $2,048 $2,297 $4,057 $4,087 $4,043 $1,047 $2,080 $3,609 $1,749 $3,266 $3,196 $3,247 $2,992 $2,434 $8,246 $8,317 $7,952 $7,203 $6,547 $6,271 $6,137 $5,559 $4,912 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue disaggregated by geography disclosure in our condensed consolidated financial statements where revenue is disaggregated by geography based on the billing address of our customer. 6

Payments & Other Fees Revenue by User Geography In Millions Rest of World Asia-Pacific $274 $269 $262 $6 Europe $8 $17 $6 US & Canada $24 $27 $64 $193 $193 $67 $188 $186 $66 $5 $7 $5 $7 $171 $11 $19 $16 $165 $11 $8 $7 $11 $12 $54 $47 $47 $55 $44 $41 $187 $170 $163 $121 $121 $120 $114 $108 $105 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue disaggregated by geography disclosure in our condensed consolidated financial statements where revenue is disaggregated by geography based on the billing address of our customer. 7

Average Revenue per User (ARPU) Payments and Other Fees US & Canada Worldwide Advertising $7.37 $7.26 $34.86 $34.55 $7.05 $33.27 $6.42 $0.12 $30.12 $0.11 $6.09 $0.77 $0.69 $0.11 $0.67 $27.61 $0.07 $0.43 $0.08 $0.50 $7.25 $7.15 $34.09 $33.86 $6.94 $32.60 $6.35 $29.69 $6.01 $27.11 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Europe Asia-Pacific Rest of World $10.99 $10.70 $10.69 $10.68 $10.98 $3.24 $2.24 $3.04 $9.56 $2.12 $2.13 $2.96 $0.17 $2.11 $9.55 $0.17 $0.17 $2.78 $8.82 $0.02 $2.68 $1.89 $0.01 $2.67 $0.03 $1.82 $0.11 $0.01 $0.01 $0.02 $0.01 $0.13 $0.02 $0.01 $0.01 $10.82 $10.52 $10.51 $3.22 $2.23 $3.01 $2.11 $2.12 $9.45 $2.94 $2.77 $8.69 $2.66 $1.88 $1.81 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Please see Facebook's most recent quarterly or annual report filed with the SEC for the definition of ARPU. Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue disaggregated by geography disclosure in our condensed consolidated financial statements where revenue is disaggregated by geography based on the billing address of our customer. 8

Expenses as a % of Revenue General & Administrative Marketing & Sales 27% 19% Research & Development Cost of Revenue 8% 7% 6% 6% 6% 5% 14% 14% 13% 14% 14% 13% 15% 5% 11% 11% 20% 19% 20% 19% 19% 19% 17% 20% 15% 20% 19% 18% 18% 17% 17% 16% 14% 12% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* Q3'19 *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the U.S. Federal Trade Commission (FTC) settlement as discussed in our press releases furnished with our Reports on Form 8-K dated April 24, 2019 (Q1 2019 Press Release) and July 24, 2019 (Q2 2019 Press Release). These expenses are included in general and administrative expenses. 9

Income from Operations In Millions $7,820 $7,352 $7,185 $5,863 $5,781 $5,449 $5,122 $4,626 $3,317 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* Q3'19 *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the FTC settlement as discussed in our Q1 2019 and Q2 2019 Press Releases. 10

Operating Margin 57% 50% 46% 46% 44% 42% 41% 27% 22% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* Q3'19 *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the FTC settlement as discussed in our Q1 2019 and Q2 2019 Press Releases. Excluding these expenses, our operating margin would have been 20 percentage points higher in Q1 2019 and 12 percentage points higher in Q2 2019. 11