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Facebook Q4 Earnings Review: Social Media Minute


Hi, I’m Jan Rezab,
this is Social Media Minute. Facebook just announced
their quarterly earnings and their results are quite amazing. Most importantly,
from revenue perspective the company’s now
making $5.8 billion per quarter. That’s almost $2 billion
per month, that’s amazing. $2 billion a month.
Sink that in. On monthly active user count
the growth is not impressive. They’re now
1.6 billion coming from 1.55 billion. That doesn’t actually matter
on their core Facebook platform. Most of their growth
is coming from the other apps they have. Growth will come
from Instagram, WhatsApp and obviously Facebook Messenger. But they don’t need
the growth on the Facebook platform, they’re kind of dialed down
by the actual growth of the Internet and mobile Internet
spreading in the world. And as that spreads
they’ll keep growing, obviously. But I think the biggest growers
now will be those other platforms. From a perspective of opportunity, the biggest opportunity
comes from video now. Video’s certainly at the very
beggining of where it can be. I think it’s at 20% of it’s journey, they really have not scaled
the post-roll of video ads on Facebook. They could be much stronger
and penetrated throughout the regions. Second of all, of course they’re
sort of slowly going to the enterprises. Facebook at Work is now being scaled for a lot of companies
with thousands of people. Now they have
a great opportunity with that. They’re already
being used by billions of people. They can take that, and of course,
thousands of employees of a certain company will all use Facebook.
So switching to Facebook at Work will be much easier for them
than any other internal social network, like Yammer or anything else. Now, WhatsApp has a great opportunity. With WhatsApp they said,
“We’ll never put advertising on WhatsApp” but they can actually do
an enterprise version of WhatsApp and directly compete
with Slack for example and do ChatWork’s basis. Again, WhatsApp
has a huge penetration. Even at Socialbakers we’re already
using it to communicate with clients. And it’s a much better
channel than just e-mailing them or sending them Facebook messages. WhatsApp is the best for that and they
can truly hit the enterprise market. Looking ahead for 2016 they’re gonna have an amazing year. Monetizing Instagram, monetizing maybe
Whatsapp a little bit deeper, scaling Oculus
and launching it over April. This is gonna be
an amazing year for Facebook and I hope to see great growth and maybe we’ll be
sitting here looking at Q4 2016, looking at not 1.5 billion but maybe closer to a $7-9 billion number. Good luck, Facebook, with all
of next year, we’ll be watching you.

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