Your Existence Is Worth About $14 to Facebook
You might think the family photos you post on Facebook are priceless. But to company founder Mark Zuckerberg, your contributions to the social network have a specific value: about $14 a person.
OK, we're rounding up. Each Facebook user in the United States and Canada made the company an estimated $13.54 during the fourth quarter of 2015—an increase from $10.49 in the third quarter, the Washington Post reported. North American users are significantly more profitable than those in other regions: The company makes an average profit of about $3.73 off of each user around the world.
Facebook's fourth quarter earnings—with $1 billion in profit and $5.8 billion in revenue—handily exceeded analyst estimates. As other tech firms such as Twitter and Apple struggle to attract users, Facebook reported 1.59 billion total monthly active users, a 14-percent increase from the same time in 2014. The strong report caused share prices to jump more than 12 percent in after-hours trading Wednesday, CNBC reported.
Facebook's strong quarter was largely driven by mobile advertising, which accounts for 80 percent of revenue. It's also bolstered by acquisitions such as Instagram that attract users and serve as an advertising platform.
However, Facebook will be tested in upcoming months: Oculus, the virtual reality company it acquired for $2 billion, will ship its first commercial headset units in March.