Facebook Inc(NASDAQ:FB) stock surged over 2% (as of 9:59AM EST on Feb 1st, 2018; Source: Google finance) post their decent fourth quarter and consequently full year performance. Facebook is currently used by more than 2.1 billion people across the world with 1.4 billion people using it daily, which is a rise of 14% against pcp. Growth in markets like India, Indonesia and Brazil drove the performance. Their business surged 47% on a year-over-year basis to $40 billion for the fiscal year of 2017. Facebook is been used by >700 million people each month to buy and sell things. The group launched marketplace in 30 countries last year, including 11 countries in the last quarter alone. The group is enabling businesses with more ways to communicate with their customers via their Messenger and WhatsApp. Accordingly, they launched a plugin for Messengers wherein people can chat live with companies on their websites. Currently, more than 2 billion messages are sent between businesses and customers every month.
WhatsApp already crossed 1.5 billion monthly active with people now sending more than 60 billion messages every day. Given this rising demand of messages between people and companies, the group launched WhatsApp business which is a new app designed specifically for small and medium businesses to connect with people they want to reach.
Fourth quarter of 2017 ad revenue surged 48% year-over-year, while mobile ad revenue enhanced 57% yoy to $11.4 billion, with the segment accounting 89% of total ad revenue in Q4. The full-year 2017 mobile ad revenue surged 56% yoy against 2016 performance. Over 70 million businesses use Facebook across the world. During the fourth quarter of 2017, the average price per ad surged 43% while the number of ad impressions served enhanced 4%, on the back of feed ads on Facebook and Instagram. Payments and other fees revenues rose 7% yoy to $139 million.
Meanwhile, Mobile first video was 50% of their video ad revenue as of the fourth quarter which is a rise from 41% last quarter. The group is observing a better short form videos performance. Facebook expects video to grow in the next three years, and accordingly they launched a product like Watch party, where friends can watch a show together.