Facebook is announcing strong revenue results, although active use growth is slowing in key markets

Facebook is just continuing with the platform reporting on both user and revenue increases in the first quarter of 2021, while also retaining significant momentum in its “Other Revenue” category, largely driven by sales of the Oculus VR and Portal smart speakers.

First, with users – Facebook’s monthly number of active users (MAU) increased to 2.85 billion, which is 10% more than last year.

As you can see here, Facebook again recorded the highest growth in the Asia-Pacific region, as has been the case in the last six reporting periods.

Facebook is recording particularly strong adoption in Indonesia, which is now Facebook the third largest consumer market, following India and the United States. Use of Indonesian Facebook has disappeared from 115 million active people in 2017 to 140 million today, while India also continues to record solid growth as more and more of the country gradually comes online.

Both regions represent a significant opportunity for the social network that is now investing in improved connectivity to attract even more people in those countries to their applications. Like India, Indonesia is still developing its digital ecosystem, which gives Facebook the perfect opportunity to become a key connectivity tool, providing new tools and processes for 275 million + Indonesian citizens while looking for new ways online – which is also where Facebook’s increased investment in e-commerce and digital payments are further impacted, providing more ways to facilitate more features in users ’day-to-day processes.

In this way, Facebook could become a transformative utility in these emerging markets, which is currently the biggest opportunity for the company to grow.

As for daily assets, Facebook it is now 1.88 billion, up 8% from the same period last year, and approaching the next important milestone for the app.

Facebook Q1 2021 - DAU

You can see that the amount of daily active users as a percentage of total monthly activities has remained stable, which shows that despite various controversies and concerns, people are still logging on to Facebook at the same rate as always.

In many ways Facebook has become a daily ritual – everyone logs in in the morning to see what their friends and family have posted and are up to date with birthdays, events, announcements, etc. In that sense, it would also be interesting how much time people spend on Facebook and how that has changed over time – because while people may still be logging in, I guess they now spend more time in other apps, like Instagram, YouTube, and TikTok.

Facebook doesn’t provide that insight – but it’s interesting to note that despite that mass bans on extremist groups, despite concerns about how Facebook is distorting people’s opinions, despite the growing number of people vowing to delete the application, this is clearly not happening. At least not to a significant enough extent to affect the total number of companies – although the growth of the US and Canada region has remained largely unchanged, and Europe is also now on the rise in the number of DAUs.

The main concern on that front is that the North American region is still where Facebook generates most of its money, followed by Europe.

Facebook Q1 2021

Although the Asia-Pacific region represents a future opportunity, a slowdown in those markets could intimidate investors.

At some stage, of course, Facebook usage needs to level off as receipts peak, but growth figures here could also reflect those growing concerns about the potential negative impacts of the platform.

However, as you can also see, total ARPU numbers are growing (year-on-year), which also helped Facebook achieve a strong total revenue result for the quarter – 48% more than the same period last year.

Facebook Q1 2021

As per Facebook:

“We are pleased with the strength of advertising revenue growth in the first quarter of 2021, driven by a 30-year increase in average ad price and a 12 percent increase in ad delivery. We expect advertising revenue growth to continue to be driven primarily by price over the rest of 2021 . “

That’s not great news for advertisers, with rising Facebook ad costs. And if Apple influences IDFA update go as expected, which will also reduce the effectiveness of advertising on Facebook, which could further increase advertising costs.

The risk for Facebook is that it could encourage advertisers to turn to other platforms – but again, at least all iOS apps will be equally affected. In that sense, Facebook is likely to be in a good position to mitigate the consequences in the long run, given Android’s popularity in regions outside Western countries – but still, Facebook is likely to have a short-term hit when full IDFA effects appear.

But again, Facebook has reach. See this “Family of Applications” usage chart.

Facebook Q1 2021

The social behemoth is getting closer to 3 billion users every day. For context, the population of the whole world is around 7.7 billion, and half of them still they do not have internet access. This means that most of the 3.85 billion people who can feasibly access Facebook every day make, with the addition of more, a truly amazing status.

There are some additional provisions within that equation, of course, regarding people with multiple accounts and how Facebook tracks such. But still, it’s crazy to think about how Facebook has become so ubiquitous in modern society.

The numbers also underscore how Facebook can have such a big impact on how people think and act, especially in a political sense.

And then, as noted, there is this:

Facebook Q1 2021

Facebook continues to record strong investments in its ‘Other’ revenue, primarily through increased sales of its Oculus VR headsets and Portal home speakers.

It’s still only part of Facebook’s total revenue, but Facebook is also increasingly becoming a hardware company, which will strive to advance further with the arrival of its first Smart glasses later this year.

Facebook CEO Mark Zuckerberg has noticed this growth in his business official statement about the results:

“We had a strong quarter as we helped people stay connected and businesses grow. We will continue to invest aggressively to provide new and meaningful experiences in the years to come, including in newer areas like augmented and virtual reality, commerce and the creator economy.”

AR and VR will become increasingly important elements in the future of Facebook, while increased investment in e-commerce andthe economy of the creator‘, as Zuckerberg notes, will help users come back and maintain Facebook apps as key programs in everyday life.

Which is actually where Facebook is now. Certainly, other, newer, trendy apps can get more pump – and Facebook will continue to haunt them for that. But the position of the platform in the modern interactive process is undeniable – and as statistics show, Facebook is a key connector in so many ways.

That reach, that capacity will give advertisers back, Facebook will be connected and will help guide the platform to the next shifts in usage.

Get scared, get away from it, Facebook maintains it anyway. And like Thanos, it increasingly seems ‘inevitable’, in terms of its constant presence.

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