By Geoff De Weaver, CEO + Founder Touchpoint Entertainment Inc.
If you’re like me, and love all things digital, disruptive and game-changing, the things that captured my attention the most recently at the latest Earnings Announcements for Facebook, Twitter and LinkedIn were all focused around – social media marketing, mobile marketing, digital disruption, VR and innovation.
All those areas are about improving the quality of customer experiences, doing things better, faster and anticipating the market and future. If you listened or attended both Facebook and Twitter’s latest earning reports, it is very evident who is the “big dog” and moving fastest. Here’s what stood out for me about both Facebook and Twitter recent Earnings Announcement. It was clear to me which brand is the most transformational, innovative optimistic and decisive today.
LinkedIn also, announced their second-quarter earnings – and it really caught my eye. Here are my key outtakes of all the reports filed and presented by Mark Zuckerberg, Jack Dorsey and Steve Sordello, CFO of LinkedIn.
It was quite apparent to me which company is in the best shape to Shift Paradigms, Game-Change, Innovate and continue to Disrupt the market. When reviewing the latest results and analyzing the results, if was also clear to me who’s most passionate about their business, who’s most comfortable with risk, who’s the most decisive and is most competitive. I think my scores highlight my analysis.
Let me know if you agree?
- Facebook (Second Quarter Results):
Mark Zuckerberg, Facebook founder and CEO stated “Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services.”
In fact, the entire mobile and app area within Facebook is growing exponentially. Importantly, Facebook now counts more than 1.3 billion mobile users, putting its smartphone-based audience at a billion more people than Twitter attracts as a whole. Just look at staggering growth from WhatsApp, Messenger and Instagram alone! #POW
Just look at these explosive results:
- Daily active users (DAUs) – DAUs were 968 million on average for June 2015, an increase of 17% year-over-year.
- Mobile DAUs – Mobile DAUs were 844 million on average for June 2015, an increase of 29% year-over-year.
- Monthly active users (MAUs) – MAUs were 1.49 billion as of June 30, 2015, an increase of 13% year-over-year.
- Mobile MAUs – Mobile MAUs were 1.31 billion as of June 30, 2015, an increase of 23% year-over-year.
Bottom-line on Facebook:
Facebook’s Mobile advertising revenue exploded.
In fact, Mobile advertising revenue represented approximately 76% of advertising revenue for the second quarter of 2015, up from approximately 62% of advertising revenue in the second quarter of 2014.
It is clear focusing heavily on mobile, apps, video, VR, Internet.org and his trends towards richness and speed / frequency are paying huge dividends to all shareholders, investors and staff. In conclusion, the only thing I know Facebook needs to closely monitor is, with the development of video on its platform, Instagram, Messenger and recent acquisitions like: WhatsApp and Oculus VR among contributing factors. Expenses were up 82% last quarter to $2.77 billion.
‘Interestingly, Facebook now has 1.5 B monthly active users and 1.31B mobile users; 65+% are now daily users.’
Additionally, I was thrilled to hear on Mark Zuckerberg’s Town hall Q &A last month that Facebook is moving to keep driving their ‘Instant Articles’ product. E.g. making the news experience on Facebook even more enjoyable, easier and quicker to use, read and access breaking news. Loved this statement via Mark’s Facebook Q & A on July 1, when he said this about Instant Articles:
“One of the biggest issues today is just that reading news is slow. If you’re using our mobile app and you tap on a photo, it typically loads immediately. But if you tap on a news link, since that content isn’t stored on Facebook and you have to download it from elsewhere, it can take 10+ seconds to load. People don’t want to wait that long, so a lot of people abandon news before it has loaded or just don’t even bother tapping on things in the first place, even if they wanted to read them.”
He went on to say, “That’s easy to solve, and we’re working on it with Instant Articles. When news is as fast as everything else on Facebook, people will naturally read a lot more news. That will be good for helping people be more informed about the world, and it will be good for the news ecosystem because it will deliver more traffic.”
And in conclusion he said, “It’s important to keep in mind that Instant Articles isn’t a change we make by ourselves. We can release the format, but it will take a while for most publishers to adopt it. So when you ask about the “next thing”, it really is getting Instant Articles fully rolled out and making it the primary news experience people have.”
Finally, another key point I would like to highlight on Facebook is in terms of the long-term health of the social network, the most important stat is that Facebook held strong at 65% stickiness, or DAU divided by MAU. That’s the representation of how engaged users are, and the fact that it’s not sliding is a strong sign as the service competes for attention with YouTube, Snapchat, Twitter or LinkedIn.
My Grade: A
- Twitter (Second Quarter Results):
What really hit me was the remarkable difference in tone, feel and manner between the key executives at Facebook, Twitter and LinkedIn on their recent calls. I suppose, the recent events with Dick Costolo, had a huge impact on their current market position, results and attitude with latest announcements.
Here are some of the key elements I’ve highlighted on the Twitter Earnings Announcement:
Twitter Second Quarter Results:
- Early into the call, interim CEO Jack Dorsey, co-founder of the company, said user growth is still too slow. (And, that comment set the stage for the rest of the announcement)
- Jack Dorsey then went on to make the following points too: ad sales that were up 63% year over year for the quarter, hitting $452 million. Overall, revenue reached $502 million.
- Twitter also disclosed that it generates 88 percent of its ad revenue on mobile devices.
- A bright light was that Twitter announced a partnership with Google’s DoubleClick platform to improve advertising performance measurement and attribution for Twitter direct response marketers.
- Twitter also launched its Official Partner Program, a new initiative combining industry-leading product and service partners that help businesses achieve better results on Twitter and beyond.
- Twitter is in the midst of a CEO search and is trying to find itself in the process.
- Dorsey also stated in the Earnings Announcement, “In order to realize Twitter’s full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter’s value faster, and better communicate that value.”
- Interestingly, Twitter live-streamed the results of their Earnings Announcement on its new app Periscope, where more than 4,000 people watched. The video-sharing app is seen as a key technology for Twitter. Periscope recently announced they have now hit 10-million-user threshold in just four and a half months since launching the app and, Approximately 40 year’s worth of live streaming footage is being watched every day on Periscope. That equates to 21 million minutes every 24 hours. (Note: Fortunately, the latest 2 year deal Twitter just executed with the NFL seems to add more brightness to their destiny – in fact, this is an extension of a deal the NFL initiated in 2013 with Twitter)
My Grade: B
- LinkedIn (Second Quarter Results):
Jeff Weiner, CEO LinkedIn, stated cumulative members grew 21% to 380 million, unique visiting members grew 16% to an average of 97 million per month, and member page views grew 37%, acceleration over Q1’s growth rate and well ahead of unique member growth.
Mobile continues to grow at double the rate of overall member activity, and now represents 52% of all traffic to LinkedIn but, not nearly the same speed and velocity as Facebook.
But, from my perspective, following Jeff Weiner’s Second Quarter 2015 Results Announcement, I would like to make these comments about LinkedIn following the session:
- LinkedIn shares tumbled after the company released its Announcement as it disappointed the market. The company’s first-quarter loss widened to $43 million versus $13.5 million a year earlier, although revenue of $637.7 million was up from $473 million a year ago.
- LinkedIn may have more members than Twitter’s registered 300 million monthly active users (although less than Facebook’s 1.5 billion)
- Members using mobile devices spent between 14 minutes and 20 minutes a month on LinkedIn during October, November and December 2014, according to the ‘Electronic Mobile Measurement’ conducted by research group Nielsen, a survey based on passive monitoring of 30,000 mobile subscribers and 5,000 panellists. This compares to more than 1 hour a month on Twitter and around 10 hours a month on Facebook. Bottomline – people aren’t spending time on LinkedIn. (And, that is a serious long term issue!)
- Revenue for Q2’15 was $712 million, an increase of 33% compared to the same quarter last year; and on a constant currency basis an increase of 38% compared to the same quarter last year.
- From a personal perspective, I feel the fake profiles I am getting sent daily are a huge issue that LinkedIn must address immediately or business people will spend even less time on the site.
My Grade: B-
As I repeatedly say, if digital brands, social networks and all unicorns understand, in order to succeed in today’s environment, you must focus, anticipate and manifest massive continual improvements in your business if you are to be successful and thrive.
After watching and listening to Facebook, Twitter and LinkedIn’s latest Annual Announcements, it really highlights to me, that Mark Zuckerberg, is constantly striving for never ending improvement, focussed on constant innovation and looking to implement bigger, smarter, game-changing programs and services than either Twitter or LinkedIn these past six months.
I’m only seeing Facebook becoming more dominate, expanding globally with Internet.org , driving more customer focus and lifting its customer experience standards going into Q3/2015.
What say you?
More About Geoff De Weaver:
Hailing from New York; Geoff De Weaver is the driven, passionate and charismatic entrepreneur, lifestyle guru behind Touchpoint Entertainment Inc. Geoff is a catalyst for change, business coach, digital provocateur and a strategist for success.
As a CEO + Founder, Geoff is always on the lookout for the latest business innovation, sporting trends, music trends and for the latest ways to engage with people; from mobile and streaming technologies, to live events, music, sports marketing, entertainment and customer/fan experience.
Geoff has a global 25-year background of representing some of the world’s most iconic worldwide brands including: Coca Cola, IBM, IMG, P&G, Microsoft, Nike, British Airways, Wells Fargo, EA Sports, MasterCard, Shutterfly.com, EA.com, E*Trade, Nestle, Air France, AT&T, VISA, Unilever, EA.com, Ferrari, American Express, P&G, Trend Micro, Acer Computers, BMW, Shutterfly.com, Mars, Pfizer, TiVo, EarthLink Internet, American Express, Telstra and others.
- Top 0.5% Worldwide on Twitter Globally
- Top 1% Influencer on LinkedIn and 32+ million network on LinkedIn worldwide
- Top 1% Most Viewed Profiles on LinkedIn (380+ million members)
- Geoff is a Digital Pioneer, Data-Driven, Entrepreneur, Business Coach + Innovator.
A selection of self-penned published e-books exploring such spheres as: Social Business, Social Media, LinkedIn etc, all currently available at: Amazon: http://www.amazon.com/Geoff-De-Weaver/e/B007DAEKFG
Feel free to get in touch with Geoff for further information:
- Personal Website: geoff.deweaver.com
- LinkedIn: https://www.linkedin.com/in/geoffdeweaver
- Twitter: @geoff_deweaver
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