Who said there was no such thing as a money tree? Facebook has 2.3 billion of them. While it’s no secret Facebook makes a lot of money, the staggering growth of Facebook’s revenue doesn’t get the attention it deserves. Especially when Facebook’s user base only grew in the single-digits this year.
In 2018, Facebook’s monthly and daily active users both grew by 9%. Facebook’s revenue on the other hand grew by 37%, which is 311% faster growth than their active user base. To fully appreciate Facebook’s revenue growth, it helps to look at Facebook from a new perspective.
Facebook Average Revenue Per User
Check out this chart I made of Facebook’s ARPU growth over the last 8 years:
The first obvious note is that Facebook’s S-Curve is showing no signs of slowing down. Every single geographic segment Facebook reports has grown in revenue each of the last 8 years. Facebook’s ARPU globally is $25 per year, while companies like Twitter and Snap have ARPU figures of $9 and $6 respectively*.
But that’s not the most interesting part to me. Look at the blue line, which shows Facebook’s North American ARPU.
Facebook is making $112 per year on the average North American monthly active user.
That’s nuts, and based on past growth, their North American ARPU could approach $150 per year in 2019. Many avid Facebook users are contributing far more revenue than the chart above shows, keep in mind that it depicts averages among monthly active users.