Shirley Chan's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Bullish
Model Description: FB’s main drivers to project future revenue in this model are Monthly Active User (MAU) growth rates and Average Revenue Per User (ARPU). A key assumption is that the impact of COVID-19 will continue through 2020. After COVID-19 was announced as a global pandemic in mid-March, FB saw a surge in users across their products. I projected FB to have higher than usual MAU growth rates this quarter due to shelter-in place restrictions. As these restrictions are lifted, MAU growth rates will start to slow down. Taking the next COVID-19 outbreak into consideration, FB will have another high growth in MAUs this fall. I further projected that MAUs will stabilize in 2021 as conditions begin to improve...click here to continue reading
View: Bullish
Model Description: FB’s main drivers to project future revenue in this model are Monthly Active User (MAU) growth rates and Average Revenue Per User (ARPU). A key assumption is that the impact of COVID-19 will continue through 2020. After COVID-19 was announced as a global pandemic in mid-March, FB saw a surge in users across their products. I projected FB to have higher than usual MAU growth rates this quarter due to shelter-in place restrictions. As these restrictions are lifted, MAU growth rates will start to slow down. Taking the next COVID-19 outbreak into consideration, FB will have another high growth in MAUs this fall. I further projected that MAUs will stabilize in 2021 as conditions begin to improve...click here to continue reading
| FB Earnings Model (Shirley Chan).xlsx |
Shirley is an undergraduate student at Baruch College studying finance.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.