2018 is an eventful year international social network, Facebook continues to struggle with privacy and political quagmire; Snap experienced a radical revision brings the loss of users, do not see the head loss predicament; because the fight against false number, Twitter monthly active users had to change the export earnings decline, size, ushered in a number of uproar; only the muffled fortune the marriage of the social networking site Match good point, with Tinder super cashability, its membership and revenue rising all the way.
The listed company’s financial and social data overview: FB hard, Twitter profits soared, Snap losses narrowed, muffled fortune Match.
The international social market, acquaintances and inclusive social market is undoubtedly the biggest, FB off is the global social acquaintances of the crown.
As the global service most users in the social platform, FB’s revenue, profit, the user can be described as warlords, but not stiff.As shown below, Facebook accounted for 4 American social platform revenue share of 90%, 101% of the profit (loss of Snap, pulled up the FB ratio), Matthew effect is significant.
From the point of view of revenue growth, accelerate the commercialization is profitable revenue growth the fastest way Snap.2018 Snap revenue grew 43% to $1 billion 180 million, for the 2019 turnaround laid the foundation.
Just enter the profit growth, profitability mark Twitter, margin expansion and profit growth is most gratifying.Over the past 3 years, Twitter has successfully staged a classic case of founder Jack, the return of the king, led the company to regain growth.
The user growth, Twitter, FB of the users daily living there are still nearly 10% year over year growth.China outside the international market population of about 6 billion people, the current FB users daily living for 1 billion 500 million people, including Whatsapp, the whole platform users daily living more than 2 billion people, which is only 1/3 users worldwide current daily use of FB products in China penetration WeChat +QQ FB as the target, the user is still very high the growth of the ceiling, while Twitter, Snap, Match say nothing.
After reading these four social networking company summary, here we review one by one of the company:
FB:2018 was delayed in 2019, to create a new social experience
2018 is the inverse of the FB years, the company from top to bottom, from the inside to the outside repeatedly beaten, struggling to cope with various public crisis and to patch products.Although the company’s revenue and user growth has not been much affected, but in 2018 the company product experience will be delayed, 2019 FB hopes to set sail again, a breakthrough in creating new social experience.
Review of financial data: revenue and users to maintain growth, reduce the margin of safety investment
4Q18 Facebook users still maintained a nearly 10% growth rate, Nikkatsu users reached 1 billion 523 million, the amount of monthly living users is 2 billion 320 million people.Companies including Facebook, Instagram, MAU or Messenger, WhatsApp platform and more than 2 billion 700 million people, more than 2 billion users daily living.
The company’s 4 quarter revenue of $16 billion 900 million, an increase of 30%.Revenue growth was mainly due to the instagram platform for the realization of the user contribution, growth and the continuous improvement of user ARPU.
The various regions of the revenues were significantly increased, with the North American revenue grew 26%, Europe 25%, Asia Pacific area 14%, other 19%.
The 4 quarter, FB from each user who can earn an income of $7.37 (equivalent to a day from a user who earn 5-6 cents).North American users realizable value is still the highest, $34.86; $10.98 for European users, users in the Asia Pacific region for $2.96, $2.11 for the rest of the world.The data on the user, the monetary value of various regions of the globe are ascending.
The company’s 4 quarter spending of $9 billion 100 million, an increase of 62%, higher growth is mainly because of privacy and security investment.In 2018 the company into a number of areas of security and privacy from 10 thousand to more than 30 thousand people.
The company’s 4 quarter operating margin was 46%, 57% lower than the same period last year, as we have said, this is mainly because the field of security and privacy caused by investment.
The company operating profit of $7 billion 820 million, an increase of 6%, subject to the decline in operating margin, operating profit growth is slowing down.
Net profit of $6 billion 882 million, an increase of 61%, net profit growth rate is higher than the operating profit growth is mainly because the influence of adjustment of American law brings.
In 2019 the company strategy: to create a new social experience
In the event of 17-18 years of water against the years, and to repair the security and privacy issues platform, FB 2019, priorities include:
(1) progress to social problems in the Internet and the company;
(2) to create a new experience to improve people’s life, and lay the foundation for greater future ascension;
(3) products and services through commercial enterprises especially the growth of small and medium-sized enterprises;
(4) act and the public on the company’s role in society more transparent communication.
2018 years of struggling to cope with a variety of privacy and security issues so that companies in the core product experience improvement everywhere at once.2019 Zuckerberg company hopes to create a new experience, allowing users to do new things have never done, these aspects include:
Message: message (Messaging) becoming a social center in more countries will launch Whatsapp payment this year; group and Stories secret sharing will become the company is committed to build the core of social experience; let the user can interact with more business (commercial).
Group (Groups): continue to make meaningful groups like friends and family as a part of the Facebook core experience.
Watch: the number of users per month now use Watch more than 4 million people, with average 20 minutes every day, means that FB found a way to increase the flow of information in the video.This means that the video business growth will have a negative impact on the flow of information interaction, information flow is the main demand of user interaction and scene FB.
Instagram: business and shopping experience progress will be exciting.At present, the number of users daily living Instagram Stories has more than 500 million people.
Long term: continue to focus on the people gathered in the new technology, including AR/VR.The market is quite high Oculus Quest will be in the spring of 19 delivery; Portal performed better than expected; FB own brand hardware products began to have their own voice in the market.
Business, currently has more than 90 million businesses use FB products and services, most businesses free use of FB products and services.An investigation of businesses in the half, after using FB, they can increase business and hire more people, means that FB indirectly created millions of jobs, while the United States last year to create jobs for 2 million 600 thousand.
Today, FB has a total of 700 million active advertisers, including 200 million advertisers have begun to use Stories to reach users.4 quarter of the company to customers launched Messenger Stories advertising service.
Future: more abundant social experience and user growth space
As mentioned earlier, in the face of the international market of 6 billion population, FB still has to continue to grow the user space; reference WeChat, in connection with service and business, FB in payment, shopping, services industry and other fields still have a brilliant future; believe that through the construction of these new social experience, FB creates customer value and business value will remain further release.
Twitter: after the turnaround, profit blowout of the year
The successful occupation managers in the world, also have mixed qualifications of occupation managers, however, the company is the founder of their deep love.This is why Jack’s return in 2015 is how to have high expectations.
The return of the king will deliver the goods, under Jack Twitter, the company’s products and user experience is improved, to regain growth, the value of advertising by advertisers certainly, stocks continued to rise.
2018 financial data review: profit DAU blowout, rose, fell MAU
On the basis of 2017, 2018 is a year of profit Twitter blowout.Twitter’s 4 quarter revenue reached 909 million yuan, up 24%, Non-GAAP net profit rose to $141 million from a year earlier to $244 million, net profit rate of 28%.
In the Twitter platform security, enhance the content of reporting experience, thanks to the ecological governance, report the amount of Twitter year on year decline of 16%.
However, Twitter user growth data is mixed for investors.MAU has 3 consecutive quarters of decline, from 336 million down to 4Q18 high 1Q18 321 million people, both in North America or the international market declined.Twitter is the platform security measures to strengthen, clean up the fake account due.
MAU is not good, then it is not reported.Investors do not see a drop of love, so Twitter do not intend to disclose MAU, users daily living and pushing monetary indicators, namely those through the account login Twitter, Twitter users for advertising.
The index of nearly two years of performance is very good, the 4 quarter of the day the number of users is 126 million people, year on year growth of 11 million people, including overseas users increase 10 million people, growth of 2 million users in the u.s..
DAU growth is gratifying, but MAU fell but not let people whisper.A larger pool after MAU represents products to attract users, DAU is a very active part of this big pond, only two growth is favored by the investors together.
Twitter modify the financial disclosure index move regardless of the better reflect the business growth of the company is how to correct, but for the market, this is clearly not the political right.
Fortunately, revenue and profit growth to offset the negative cognitive market in dau.Twitter 4 quarter revenue grew 24%, of which advertising revenue growth of 23%, data authorization and other revenue growth of 35%.
The United States and the international market have maintained similar revenue growth.
Thanks to the profit, improve profitability, operating profit rose 88%.Twitter in the 4 quarter operating profit of $207 million, an increase of 88%, operating margin increased to 23%, while a year ago, operating profit rate of only 15%.
Net profit of $255 million, an increase of 180%, net profit rate of 28%, higher than last year’s 12%.
The main information flow information flow: recommended by diss, make regression time line information flow more easily
Twitter in 4Q18’s earnings, with particular emphasis on the home page to the control information flow sorting and interactive experience brings more easily by the time to enhance the user.
As shown in the Twitter information flow past deep sequencing logic entrance into the home page, the upper right corner, so that users can easily switch to sort by time line or in accordance with the best sort of tweets (if the user does not use Twitter for a long time, it will automatically switch back to the first show best tweets).
The company said that if the Twitter does not use the user for a long time, when he came back, first show tweets optimal, is a good experience, because he doesn’t have a down turn, this time to discover in what is happening in the world.But more often, for example, a game is intermittent, or if there are unexpected events, but in reverse chronological order but is a better user experience, because it allows users to participate in the topic in real time.
Twitter said this change significantly enhance the user interaction, which means that the Twitter to recommend information flow are reconsidered, artificial intelligence is not perfect, sometimes the simple product values can easily win.
The content, broadcast is still Twitter continue to build the field, in 2018 the company signed a new more than 100 new content of cooperation, more than 50 as the content of cooperation from the international market.
In 2019 the company strategy: investment in health products and revenue dialogue platform
In 2019 the company will work to build the credibility of the platform, blow the ash production, to help users find credible information.
The dialogue is super energy Twitter, the company will let users around the interest and events involved in dialogue and organizing easier, to help users more easily find the information they care about.
Revenue products are mainly to create good advertising platform, expand sales team, drive revenue growth.
The platform is mainly to the data center, customer data security and technical input.
Future: Micro blog platform and citizen media value
There is no doubt that Twitter is a social media platform based on the citizen user distribution, in editing distribution, distribution of media impact recommend artificial intelligence, to the social network for distribution, the people involved in the dialogue platform undoubtedly has its value.
Snap: the end user finally stopped the downward trend, the loss was significantly reduced, will soon enter the profit
Snap to FB Challenger role and wide recognition.Only a short while ago, the market in the future, FB is old, see Snap.
But from the instagram stories challenge, and the beginning of the 18 year the company will “die” and friends from other people stories mixed in with the revision, but let the company experienced a loss of the 2 quarter of 18 users; until the company admitted the mistake after the repair, the data in the end of 18 to improve.
2018 years with the commercial promotion, the company’s revenue obtained great progress, optimizing the cost structure but also to the company’s losses narrowed sharply, lay the foundation for the 2019 year turnaround.
Review: 2018 financial data loss narrowed, users stop falling
In 2018 the company’s revenue grew 43% to $1 billion 180 million, 4 quarter revenue growth of 36%.All regions of the world’s revenues were increased.Progress in revenue growth was mainly from the commercial advertising, including the increase in inventory etc..
The company’s 4 quarter day active users reached 186 million people, were flat, although less than 191 million of the 1Q18 peak, but the company is to churn the rhythm.Users daily use time in more than 30 minutes.The progress of IOS investment, IOS users over year growth.
The 4 quarter, Snap single day live user revenue of $2.09 (roughly FB to $7 more), including $3.38 in North America, Europe and other regions for $1.04, $1.24.
Thanks to the optimization strategy and cloudy engineers, the company to control the cost of infrastructure.(of course, the user stops growth also reduced this data growth pressure ~ ~).Revenue cost of $39 million to expand, mainly because the company is the content of the in-depth cooperation.
At the same time the cost of revenue growth remained stable, promote the company’s gross margin has been greatly improved, the gross margin from the same period last year, 36% increased to 48%.
By optimizing the personnel structure and cost control, the company’s operating expenses in the proportion of revenue is significantly reduced to 61%, down 30 percentage points.
Revenue growth, cost and cost structure is relatively stable, the growth of the basic revenue into the company’s profits, which significantly improved the company’s losses, EBITDA reached -5000 million, compared to $159 million for the same period last year decreased significantly.
The products of the company: the progress of friends and family to take into account the evolution of social content consumption
At the beginning of the listing, the growth of the pressure faced Snap actually on the content of consumption to reverse the trend.At the beginning of 2018 “found” page revision radical is to expand the content of consumption behavior, but because the steps are too large, and let the social interaction demand user dissatisfaction, and finally lead to the loss of customers.Finally, Snap Stories and Stories friends will make a distinction between content consumption, to repair and is compatible with this problem.
Through the content publisher and content to differentiate the friends of the Snap content, “discovery module” has successfully expanded the user content consumption.ESPN Q4 more than 60% users a week more than 3 times the original series; “CO produced with NBC The Dead Girls Detective Agency”, after the first set of users in more than 40% people watching the entire season; through the re design and adjustment of products, watch the publisher stories and show users grew 30%.High quality content publishers and new advertising products also allows the company to get advertising revenue doubled.
In expanding the content of consumption at the same time, Snap also optimize the interactions between friends experience, the newly launched Friendship Profiles function can make friends more easily see each other Stories content preserved, which increases each other.
At present, live users than the use of 70% or watch Lens content, new year’s Eve, the community or the number of watch lens more than 7 million times, 40% higher than last year.At present the number of snaps up to 3 billion times.
Strategy and Outlook: social + content can be sustained success?
In the maintenance of social market circumstances, Snap has clearly put emphasis on the content to create a field, such as publishers cooperation, making the original short video series, look through the content to attract users and revenue growth.
Intelligent mobile phone era certainly belongs to the intelligent mobile phone interactive form, like immersive experience and more small screen Stories content has been well documented in the trill on.Stories experience has also been difficult to ascend from the early social APP become the standard in good taste.The copy Snap to model China multi flash, can Stories social networking mode based on carry forward is still unknown.Snap obviously in discarding the past, it will give up by others in other places to try to pick up.
MATCH: boring marriage Fadacai sound social platform
A lot of people in China are not familiar with MATCH, its products are more famous than its Tinder.Generally speaking, Match is a complex of a dating website + domestic explore domestic Jiayuan / lily.With years of dating field, and self research + aggressive acquisition, Match is the world’s most romantic social platform company.
The following is part of its products:
The bachelors and single sister matchmaking, MATCH has also received huge returns for these people happy heart sex +.Pay increase user per capita income and promote the Match’s revenue soared.
As shown below, the past few years, Match annual revenue to 21% CAGR growth, operating profit growth of 32%, EBITDA compound growth rate adjusted for 26%.
The prospect of financial data of 2018: Tinder group revenue growth continued to pull
4Q18, Match revenue grew 21%, operating profit rose 18%, mainly due to growth in the number of paid subscribers and revenue per user contributions.
The 4 quarter, year-on-year growth of 17% Match subscribers to 8 million 234 thousand members of the North American and international market growth of 11% and 23% to 4 million 254 thousand and 3 million 980 thousand respectively.
The user ARPU grew 4%, Tinder ARPU has increased by 50% since 2016, close to other brands of ARPU value.
Tinder is currently driving the company’s membership and revenue growth of the flagship product, 4 quarter, revenue grew 57%, paid membership grew 40%, an increase of 12% ARPU.In contrast, other MATCH products have been relatively stable marriage.
Product initiatives: strengthening Tinder’s position, investment and incubation of new products
Tinder recently the first product initiatives is to expand the core group of attraction, such as the Tinder-U, expand the coverage of campus users.The company believes that young people are still exploring and experiencing life, make more friends, compared with other serious marriage MATCH products, Tinder brand positioning in the “young go wild” is more suitable for the crowd.
The second major initiatives is to strengthen the low coverage coverage area, focusing on Japan, India and South Korea, the rapid growth of the market.In these markets by product UX and function localization to attract users, through television and opinion leaders to enhance brand awareness etc..
A third initiative is the introduction of a higher degree of participation: such as providing more accurate matching by optimizing the recommendation engine; interactive and interesting news function (such as Swipe surge, music sharing) etc..
Outlook: marriage + dating market still have a brilliant future
There are a variety of numerous marriage and dating products, although such as the number of stars, but the marriage site but may not be able to help you find love.For love is so subtle, in driving the needs of users, provides a natural soil for many dating products prosperity.
Survey data show that on average, Americans under the age of 35 users need to use at least 4 software, and allows users to use other products as their own home, do some products allow users to use.So know that can not rely on a single product around the world the Match adopted a method of multi product matrix.If you live abroad, and the use of dating products, you use the products about a rate from Match’s products.
The international market is an important area of future growth Match.Match believes that in many regions of the world, dating penetration is still very low, there is a lot of room for growth, such as India, Japan, the proportion of only 11% and 17%, if it reaches 39% of us penetration means that these areas have more room for growth.
The following is the recent focus on Match new product promotion in the market: from the acquisition of Hinge, the rapid growth of market share and further expand; Ship is a recently launched to allow friends to help you find the object products, interesting; OkCupid market in India launched the product localization.
Obviously, Match is a most understand single people, and innovative dating company, its successful experience will also attract a large number of entrepreneurs to enter the field of dating, looking to bring love and encounter more choices for the user.
Risk warning: the company posted earnings interpretation, the investment decision needs to be built in independent thinking on.The snow will try to profit but cannot guarantee the accuracy and reliability of the above content, will not be liable for any loss or damage arising from any inaccuracies or omissions.
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