Compute Compounded Average Growth Rates to compare Facebook, Twitter, and Pandora

CAGR = (end value/Initial value)- 1

CAGR is the average growth in a series over a period of time, you are tasked with estimating the CAGR of the Number of monthly active users on Facebook, Twitter and Pandora. Annual Ad revenues for Facebook, Twitter, and Pandora

The Compounded Average Growth Rate is a metric that is commonly used to evaluate growth rates of users on social platforms. The formula is as follows: CAGR = (end value/Initial value)- 1

CAGR is the average growth in a series over a period of time. In your assignment, you are tasked with estimating the CAGR of the Number of monthly active users on Facebook, Twitter and Pandora. Annual Ad revenues for Facebook, Twitter, and Pandora Note that compounding the growth rate allows you to smooth the series, meaning that unexpected changes due to one-off type events in any month do not significantly affect the metric. Also, note that some data is available in a monthly series (e.g., Facebook), while other data is available only by quarter (Twitter, Pandora). The CAGR of MAUs has been computed for Facebook in the spreadsheet to demonstrate how the formula is applied. You will need to adapt the formula to make comparisons between the three platforms. You will need to compute the following figures (marked as ? in the table below) to answer the multiple choice questions on the quiz that follows: Facebook Pandora Twitter CAGR (MAUs) Q4 2013 to Q1 2020 ? ? * CAGR (Annual Ad Revenues) 2014 to 2019 ? ? ? *note that Twitter data is only available till Q1 2019. Therefore, please compute CAGR from Q4 2013 to Q1 2019 for Twitter

Tips for success #1 Note that the data for the platforms are provided on different sheets of the Excel file titled CAGR.xlsx (see screenshot below). The worksheet tabs include Facebook, Pandora, and Twitter. #2: In essence, you need to compute CAGR for each platform for the time periods listed above to make any useful comparisons. The Facebook worksheet shows how the CAGR is computed for Facebook from Q1 2010 to Q1 2020. The formula and result appear in cell H5 of the worksheet. You will have to change the formula when you apply it to estimate MAU and Annual Ad revenues growth rates. Please ensure that you sum the quarterly data for Ad Revenues to obtain annual figures (see cell E25 of the spreadsheet).

Facebook Number of Monthly Active Users in USA Canada (Millions)
			Note that n corresponds to the number of time periods, which equals 40 in the Facebook time series data
	MAUs	Ad Revenues	CAGR	=((B46/B6)^(1/40)-1)	=	1.68%
Q1 '10	130	209
Q2 '10	137	243
Q3 '10	144	260
Q4 '10	154	359
Q1 '11	163	332
Q2 '11	169	394
Q3 '11	176	395
Q4 '11	179	462
Q1 '12	183	419
Q2 '12	186	479
Q3 '12	189	538
Q4 '12	193	631
Q1 '13	195	552
Q2 '13	198	721
Q3 '13	199	832
Q4 '13	201	1,068		Annual Ad revenues
Q1 '14	202	1,039
Q2 '14	204	1,175
Q3 '14	206	1,362
Q4 '14	208	1,709	2014	5,285	=SUM(C22:C25)
Q1 '15	210	1,592
Q2 '15	213	1,826
Q3 '15	217	2,120
Q4 '15	219	2,847	2015	8,385
Q1 '16	222	2,615
Q2 '16	226	3,077
Q3 '16	229	3,431
Q4 '16	231	4,435	2016	13,558
Q1 '17	234	3,851
Q2 '17	236	4,450
Q3 '17	239	4,912
Q4 '17	239	6,271	2017	19,484
Q1 '18	241	5,559
Q2 '18	241	6,137
Q3 '18	242	6,547
Q4 '18	242	8,246	2018	26,489
Q1 '19	243	7,203
Q2 '19	244	7,952
Q3 '19	247	8,317
Q4 '19	248	10,021	2019	33,493
Q1 '20	253	8,379

Pandora Number of Monthly Active Users USA (millions)
Period	MAUs			Year	Ad Revenues (In million US dollars)
Q4 2013	76.2			2014	732.34
Q4 2014	81.5			2015	933.31
Q2 2015	79.4			2016	1,072.49
Q4 2015	81.1			2017	1,074.93
Q2 2016	78.1			2018	1,092
Q4 2016	81			2019	1,200
Q2 2017	76
Q4 2017	74.7
Q1 2018	72.3
Q2 2018	71.4
Q3 2018	68.8
Q4 2018	69.4
Q1 2019	66.04
Q2 2019	64.9
Q3 2019	63.1
Q4 2019	63.5
Q1 2020	60.93

Twitter: number of monthly active U.S. users 2010-2019 (millions)
Period	MAUs			Year	Ad Revenues (in million US dollars)
Q1 '10	10			2012	270
Q2 '10	12			2013	590
Q3 '10	14			2014	1250
Q4 '10	15			2015	1990
Q1 '11	19			2016	2250
Q2 '11	23			2017	2110
Q3 '11	27			2018	2620
Q4 '11	30			2019	2990
Q1 '12	34
Q2 '12	37
Q3 '12	40
Q4 '12	45
Q1 '13	48
Q2 '13	49
Q3 '13	53
Q4 '13	54
Q1 '14	57
Q2 '14	60
Q3 '14	63
Q4 '14	63
Q1 '15	65
Q2 '15	65
Q3 '15	66
Q4 '15	65
Q1 '16	65
Q2 '16	66
Q3 '16	67
Q4 '16	67
Q1 '17	69
Q2 '17	68
Q3 '17	69
Q4 '17	68
Q1 '18	69
Q2 '18	68
Q3 '18	67
Q4 '18	66
Q1 '19	68