Live data from Hacker News

Facebook Q1 2018 Earnings Slides [pdf]

investor.fb.com

31–40 of 271 posts

Re: Facebook Q1 2018 Earnings Slides [pdf]

#31
post #12

Slide #3 & #5 are super interesting. US/Canada is ~10% MAU but generates ~50% of the overall revenue. I wonder why US generates so much revenue compared to its small user base

Apart from the "domestic" bias, the US has 5% of the world's population and 25% of the money (share of nominal GDP).

Re: Facebook Q1 2018 Earnings Slides [pdf]

#32
post #12

Slide #3 & #5 are super interesting. US/Canada is ~10% MAU but generates ~50% of the overall revenue. I wonder why US generates so much revenue compared to its small user base

If you compare to Europe, most economic factors are similar. There are significantly more ads on television, billboards, even benches, but if anything, that would mean more surface to compete with Facebook. Small and medium companies are more likely to advertise, too -- but again, that doesn’t explain how large the difference is. There is more inequality which means more disposable income overall but not an order of magnitude more.

I have not looked at it when I worked for Facebook, so this is pure speculation, but I would suspect that this is due to saturation and data quality:

- ads are auctioned off at the equivalent of a second price meaning, an ad buyer pays enough to compensate for the second best offer (compensating for expected conversion); if you look at the revenue as a function of ratio of ads to customers, that means that there is a discontinuity when (targeted) ads become more common than available slots: they bid against each other and not against poorly targeted ads, raising the second price;

- ad targeting: there are more specific targeting options in the US; I was very taken aback to see ethic background was one (at the request of minority advocacy groups, actually); I suspect that gender orientation is; a third party was also offering income-level (an option now discontinued after the CA scandal); there are more. Better targeting allows far more valuable ads, but higher value per clic but also a higher conversion, which means a higher auction level (bid * estimated conversion).

Re: Facebook Q1 2018 Earnings Slides [pdf]

#33
So wait... In the US, my "value" to facebook is about $100 a year? (~24/q rounded up)

Can I subscribe to facebook and opt out of all advertising and any data sharing exposure with third-parties? That is totally worth $8-10/mo to me.

Edit: I get it. You don't like this idea, or you don't think it will work, or you don't think facebook's investors will like it (full disclosure: I am one). Why on earth should that stop me from putting my obviously flawed opinion out there that I am sick of being the product and I'd love to opt out of that process?

Re: Facebook Q1 2018 Earnings Slides [pdf]

#34
post #33

So wait... In the US, my "value" to facebook is about $100 a year? (~24/q rounded up) Can I subscribe to facebook and opt out of all advertising and any data sharing exposure with third-parties? That is totally worth $8-10/mo to me. Edit: I get it. You don't like this idea, or you don't think it will work, or you don't think facebook's investors will like it (full disclosure: I am one). Why on earth should that stop…

I don’t think you risk much data exposure now.

That’s, assuming that you are not using AirBnB, Uber or Tinder.

Re: Facebook Q1 2018 Earnings Slides [pdf]

#35
post #33

So wait... In the US, my "value" to facebook is about $100 a year? (~24/q rounded up) Can I subscribe to facebook and opt out of all advertising and any data sharing exposure with third-parties? That is totally worth $8-10/mo to me. Edit: I get it. You don't like this idea, or you don't think it will work, or you don't think facebook's investors will like it (full disclosure: I am one). Why on earth should that stop…

The problem for Facebook is that it is really not worth that much for many users. Even if they charge $10/year many would dump it.

Re: Facebook Q1 2018 Earnings Slides [pdf]

#37
post #35
post #33

So wait... In the US, my "value" to facebook is about $100 a year? (~24/q rounded up) Can I subscribe to facebook and opt out of all advertising and any data sharing exposure with third-parties? That is totally worth $8-10/mo to me. Edit: I get it. You don't like this idea, or you don't think it will work, or you don't think facebook's investors will like it (full disclosure: I am one). Why on earth should that stop…

The problem for Facebook is that it is really not worth that much for many users. Even if they charge $10/year many would dump it.

I get many/most prefer to be the product than the customer. I, however, would love the option to switch.

Re: Facebook Q1 2018 Earnings Slides [pdf]

#38
post #33

So wait... In the US, my "value" to facebook is about $100 a year? (~24/q rounded up) Can I subscribe to facebook and opt out of all advertising and any data sharing exposure with third-parties? That is totally worth $8-10/mo to me. Edit: I get it. You don't like this idea, or you don't think it will work, or you don't think facebook's investors will like it (full disclosure: I am one). Why on earth should that stop…

What if you could sell the data to a third party for $10+ dollars? (I’m working on a project to do this )

Also, you would need your friends to opt out too? Or at least turn on timeline review.

It seems paradoxical to share your information and also require it to be private .

Re: Facebook Q1 2018 Earnings Slides [pdf]

#40
post #14

My main takeaway from this is that #deleteFacebook has been a flash in the pan-- their active user count is still increasing across all regions. Also to note, FB only pay effectively 11% tax on some 12 billion dollars worth of revenue.

I don't think the effects of the privacy issues are completely reflected, given they happened towards the tail end of the quarter. That said, I don't think it's going to make a huge dent in the user metrics. Advertising revenue and usage however will be interesting over the next few quarters.
Post reply on HN