Earnings Recap Part 1: Facebook, eBay, Amazon, EA
It’s earnings season. If you’ve missed the reports on Facebook, eBay, Amazon, and EA, we’ve got you covered. We have compiled key coverage, audience measurement data, and the official “Verto view” so you can do your own assessment of these companies’ opportunities and challenges.
Along with usage metrics and top-ranked properties, we report each of these companies’ rank on the Verto Stickiness Index. The Verto Stickiness Index compares daily users with monthly users to measure how active, loyal, and engaged their audience is. The higher the stickiness rank, the larger the share of daily users. For example, Google’s stickiness ranking is 82, which means that 82% of Google’s users use at least one of Google properties every day of the month. Happy reading!
* FACEBOOK: Strong earnings, but needs to look to new markets for growth opportunities
- TechCrunch – Facebook Climbs To 1.59 Billion Users And Crushes Q4 Estimates With $5.8B Revenue – Speculates on saturation in some markets and growth opportunities in developing countries. Mobile-only users grew 13.2%
- re/code – Facebook’s Q4 Earnings: You’re More Valuable to Facebook Than Ever – Average revenue per person (ARPU) up 26%, despite slowdown in user growth
- Fortune – Facebook Doesn’t Think About Making Money the Way Most Companies Do – The mission of making the world “open and connected” – the proof is in the profits
- Net reach (of online universe) is 95% (235.3M users)
- Mobile reach (among mobile users) is 94% (166.4M mobile users)
- 28% of all time spent has something to do with Facebook and its properties
- On average, Facebook users spend 34 hours a month on any of Facebook’s properties.
- Facebook’s flagship mobile app reach is 79% (139.1M users), Facebook Messenger is 64% (112.9M users), Instagram is 40% (71M users) and WhatsApp is 9% (15.6M users)
- Although WhatsApp’s reach is lower than Facebook Messenger, the time spent per user is 5 times higher. The average time spent per user on WhatsApp is around 5 hours a month compared to Facebook Messenger’s 1 hour per month
- Facebook’s Stickiness Index ranking is 74%
Facebook remains the top Internet publisher in the U.S. One-third of all time spent online across multiple screens has something to do with Facebook. All of Facebook’s mobile properties are growing quickly as well: Instagram has reached 70m monthly users and Facebook Messenger 110m. Their reach on desktop and mobile is approaching saturation, so there is opportunity for improvement. For example, despite the extremely high engagement of WhatsApp users, who spend much more time on the app versus Facebook Messenger, the U.S. user base is not nearly as large as that of Europe and Asia.
*EBAY: Numbers at a crawl, trails behind competitors
- Inc. (By Associated Press) – eBay Beats Fourth Quarter Profit Forecasts – Earnings and revenues at a crawl
- Forbes – After PayPal Split, EBay Owes All Of Its Growth To StubHub – StubHub numbers reported for the first time, but not all details
- Net reach (of online universe) is 52% (129.2M users)
- Mobile reach (among mobile users) is 41% (72.9M mobile users)
- eBay stickiness index is 17%
- The average session duration is 7 minutes, 45% higher than the average session duration of Amazon
- An eBay mobile user spends less than 1 hour per month using eBay app
- An eBay user on any device (PC or mobile) spends around 2 hours per month on eBay’s websites and apps
- eBay owes its reach almost entirely to its flagship service with its other services with a much lower number of users. Stubhub (5.2M users) and Close 5 (2.4M users)
- eBay’s Stickiness Index ranking is 17%
Despite the healthy user engagement that their flagship property ebay.com has, the fact is that eBay has not fully been able to leverage mobile. Their portfolio of apps and services is far behind their competitors’ offerings, specifically Amazon. Still, eBay is one of those rare digital services that sees more than half of the U.S. online universe visiting their site or using their app monthly. The biggest question is how to further monetize that audience and expand reach with new vehicles, services, and better monetization on a per user basis — from utilizing mobile to expanding to new markets.
*AMAZON: Slowing of AWS leads to a miss
- Business Insider – Amazon misses, stock tanks – Slower than expected growth of AWS led to miss
- Forbes – Amazon Shares Plunge After Earnings Miss Wide Of Mark – Despite announcing actual profits, Q4 earnings fell short
- Net reach (of online universe) is 86% (213.8M users)
- Mobile reach (among mobile users) is 85% (150.5M users)
- 2.7% of all digital time spent is on one of Amazon’s apps or websites
- Amazon’s flagship shopping app has a mobile reach of 39% (69.5M mobile users) followed by the Kindle at 20% (34.9M mobile users), Prime Music at 10% (17.1M mobile users), and Appstore at 8% (13.7M mobile users).
- The average session duration for Amazon is 4.6 minutes compared to eBay’s 7 minutes
- Amazon’s Stickiness Index ranking is 34%
Amazon remains the top e-commerce platform in the U.S., and they have also catapulted themselves into a reigning position among e-commerce mobile users. It will be interesting to follow is how Amazon Music and Amazon Video will grow in the future. Their music service has already reached 17M monthly users in the U.S., but Amazon Video is still in the single-digit range. Amazon has launched new features on their Video service to compete with Netflix: for example, the ability to watch movies in the offline mode. Usage of this feature has grown from 1% to 9% of the total Amazon Video audience, but is this enough to boost the reach of Amazon’s Video service against the industry heavyweights like Netflix?
*EA: Will EA Win the Mobile Game?
- VentureBeat – Star Wars: Battlefront helps EA beat Wall Street’s quarterly expectations – Despite beating expectations, stock fell 9%
- MarketWatch – Shares of EA tank after revenue misses Wall Street’s estimate – Video game publisher posted better-than-expected earnings but missed on revenue
- Net reach (of online universe) is 14% (34.5M users on PCs, smartphones and tablets only)
- EA’s mobile reach (among mobile users) is 12% (21.7M users)
- EA’s most popular mobile games are SimCity BuildIt (3.5M mobile users), Bejeweled Blitz (2.5M mobile users), and The Sims FreePlay (1.4M mobile users)
- EA’s online store Origin attracts more than 4.5M users a month
- EA mobile users spend on average more than 2.5 hours a month on EA’s mobile games: Plants vs. Zombies 2 and Boggle (free) average over 6 hours a month
- There were 12.5M EA app downloads during December 2015 of games like Sims FreePlay, Plants vs Zombies, Plants vs Zombies 2, Boggle Free, and Sims 3 which all have an average session duration of more than 15min
- EA’s Stickiness Index ranking is 31%
EA has a long history in game publishing and development for PC and video game consoles, but its mobile investments over the past 2 years have also paid off. They are one of the largest gaming publishers in the U.S. with 22M monthly mobile users, next only to King and Supercell. They have also experienced solid ROI for making old brands mobile. Their top mobile game today is SimCity BuildIt. Based on the Verto Stickiness Index, EA is at 31%. While this is not the highest stickiness rate around, this is a very good score for a company the size of EA. This year, we’re wondering whether EA will continue to invest in and improve their mobile gaming business or if they will use M&A as a way to accelerate mobile growth.
Next, we’ll in Part 2 of this post, we will be summarizing earnings reports from Microsoft, Alphabet (Google), and Yahoo. Learn more about how we measure the digital, mobile consumer and our methodology for audience measurement. Subscribe to our newsletter or contact us.