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Facebook Crushes Earnings And The Stock Soars To An All-Time High (11)

07-23-2014 09:24 PM #1 cmdeal (Veteran Member)
Facebook Crushes Earnings And The Stock Soars To An All-Time High

Facebook Crushes Earnings And The Stock Soars To An All-Time High

Facebook reported its Q2 2014 earnings, blowing away expectations on the top and bottom lines. Revenue went up 61% to nearly $3 billion and earnings per share were $0.42 — 12 cents more than analysts predicted.

Facebook's gross margins increased dramatically. In essence, the company makes way more in sales this year than it used to, but its cost-base for generating those sales increased only modestly. Income from operations was a staggering $1.4 billion — this time last year it was just $562 million.

The stock went up and flirted with $74, a rise of 4%, after the market closed, hitting an all time high.

Here are the highlights:

Revenues: $2.91 billion (analysts were expecting $2.81 billion). That's a nice beat.
EPS non-GAAP: $0.42 (analysts were expecting $0.32) that's also a good beat.
Monthly active users (MAUs): 1.32 billion, up 14%.
Mobile MAUs: 1.07 billion, up 31%.
Mobile revenue was 62% of ad revenue.

To give you a better idea of just how well-run a business Facebook has become, here's the top of the income statement. I've highlighted the way margins are expanding dramatically:

07-24-2014 03:19 AM #2 jason a (Senior Member)

Was praying the fact that they made is so damm hard for us lately and that so many people got off FB advertising that there would be a dent in their rev and they would make it a bit easier for us.......... Guess we are doomed

07-24-2014 03:54 AM #3 cmdeal (Veteran Member)

Originally Posted by jason a

No unfortunately not.

Like with Google, everyone will have to live with the fact that Facebook is all grown up now.

If anything, compliance standards will only increase on these channels instead of the other way around.

07-24-2014 05:19 AM #4 iAmAttila (Veteran Member)

Originally Posted by cmdeal

Sounds like another candidare to join my love hate relationships.

07-24-2014 07:34 AM #5 cmdeal (Veteran Member)

Originally Posted by iAmAttila

Sounds like another candidare to join my love hate relationships.

Attila, you are not going to have any BFFs left.

Maybe time to adopt a puppy?

07-24-2014 07:50 AM #6 iAmAttila (Veteran Member)

Originally Posted by cmdeal

Attila, you are not going to have any BFFs left.

Maybe time to adopt a puppy?

Haha nah my newest bff is dc and nexus

07-24-2014 08:00 AM #7 Humbleaid ()

WTF, $3 billion in one quarter!!! Zuckerberg, you are the man!!!

07-24-2014 08:07 AM #8 cmdeal (Veteran Member)

Originally Posted by Humbleaid

WTF, $3 billion in one quarter!!! Zuckerberg, you are the man!!!

The really amazing stats are their MAUs, especially on mobile:

07-24-2014 08:12 AM #9 maynzie (Moderator)

Mobile revenue was 62% of ad revenue.

That speaks volumes, mobile is the future thats for sure. That was a big big move for them

07-24-2014 08:46 AM #10 zeno (Administrator)

Facebook has also recently, as in the last week, made several mobile-centric improvements.

E.g. targeting and release of their mobile ad network.

Testing time.

07-24-2014 08:54 AM #11 hiro99 (Member)

Unreal numbers but some of it is "marketing", nothing wrong with that.

For example Asia is the main growth in Monthly Active Users, presuming true numbers but they are paying for the numbers, ie. Philippines they have a deal with telcos that Facebook access does not count on data plans - hence Facebook usage is HIGH.

Google do the same, if you search in Google first for a site, a visit it through Google then the data doesn't count...PPC impressions and clicks anyone

Got to admire the angles though

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